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Seanad Éireann debate -
Thursday, 19 Jan 1989

Vol. 121 No. 16

Appropriation Act, 1988: Motion (Resumed).

Debate resumed on the following motion:
That Seanad Éireann notes the supply services and purposes to which sums have been appropriated in the Appropriation Act, 1988.
—(Senator Lanigan.)

I was dealing with the question of land tax and specifically the arguments put forward by the farm organisation, the ICMSA, which is promoting the reintroduction of the land tax. They maintain that approximately £35 million is yielded by way of farmer taxation and that it costs farmers £30 million by way of payments to accountants to have their tax affairs dealt with. Furthermore, they contend it costs the State an additional £10 million to administer farmers' returns. I contend that the land tax has a number of favourable features other than its mere Revenue yields. It puts an onus on those who have land, who not making optimum use of it to do so thereby yielding an income from it. In so doing we would be using the nation's resources in a more efficient manner to the benefit of all. Some estimates suggest that the land tax could yield approximately twice its present return. When most of the revenue yielded from any tax is being expended on administration, obviously that is a bad form of taxation.

I should now like to deal with a subject on which I have had an amount of correspondence from schoolchildren over the past year, that is overseas development aid. By way of religious instruction programmes in schools and from what they see on television children are now very much aware of the suffering, famine, deaths and malnutrition in the Third World. They condemn strongly — I must say I absolutely agree with them — the fact that in 1987 a figure of £14 million only was provided for Official Development Aid, in 1988, £10 million was provided and in 1989, £9 million will be the relevant figure. Those figures are way below the United Nations' target of 0.7 of one per cent of GNP. The Labour Party are seeking to have at least £20 million added to the various programmes for overseas development aid so that we can play our part — as the 27th richest nation in the world — to alleviate the terrible problems being encountered there.

I can remember one of the statistics given in the religion programme of fifth standard in schools, which was that one child died every minute on account of malnutrition or disease in the Third World. We realise that there is a problem in rectifying the country's finances. However, that being said, it is niggardly to become involved in this area by way of annual reductions in contributions. As a Christian country, in line with the spirit of generosity of our people as demonstrated when various catastrophies have become known, we believe the Government should respond. We should make a very definite effort this year in terms of moving towards the United Nations' target of 0.7 of 1 per cent of GNP.

In conclusion I might raise two further issues, one of which I raised when the Housing Bill was going through this House last year relating to halts for travelling people. Waterford City Council have taken this matter on board and have passed resolutions to provide proper halting sites for them thereby bringing order into the position obtaining which is not in the interests of travelling people and, in general, is not in line with proper control on the part of local authorities. The Department of the Environment are investing £180,000 in a site which will cater for 12 families. The planning committee of Waterford Corporation have undertaken a fair amount of research into how the problem can be resolved. We are urging that the Department of the Environment would provide a caretaker on such sites.

All the information available to us indicates that the success of such halting sites is related very much to having a full time caretaker who would ensure that standards are maintained and in turn, would help the travelling people to make full use of the facilities provided for them.

During Committee Stage of the Housing Bill the Minister indicated that he would take another look at this. I ask him to do so because there is major investment in halting sites and in order to maximise the return on such investment it is essential that caretakers be provided.

The final point I want to make relates to Waterford Airport when again, I find myself complimenting the Government. A figure of £1 million was provided for the development of Waterford Airport in 1988 which investment will play a large role in the proper development of the airport into a regional one. There is now a commercial interest becoming involved in the airport with a considerable interest in tourism in the Waterford area making an investment in tourism there. We are seeking substantial improvement of the access road to the airport because its present condition is most unsatisfactory to say the least. Waterford Corporation and Waterford County Council have——

The Minister of State at the Department of Tourism and Transport appears to agree with the Senator ——

Before he arrived I had complimented his colleague on the Departmental provision. I unreservedly compliment the Government on the £1 million provided last year. Nonetheless, like Oliver Twist, we are always looking for a bit more ——

We will have to get together on the question of the access road to the airport.

Waterford Corporation have agreed the section for which they are responsible. They are now proceeding by way of CPOs to acquire the land. Waterford County Council is almost there at present. I seek the continuing support of the Minister of State for that project in Waterford. I ask the Minister to use his good offices to persuade his colleague in the Department of the Environment to provide that money.

I said at the outset I would deal with poverty. My colleague, Senator Jack Harte, dealt with this issue in great detail yesterday. While progress has been made in dealing with the national debt it seems that the wrong people are being affected. The Labour Party wish to ensure this year in respect of social welfare payments that we go substantially along the road towards providing a minimum income of £60 for a single person and £96 for a married couple, and that we end the cutbacks in the health services as we find a two-tier health system is emerging. As one commentator said, we are developing now a very large under-class in this country. We are looking to the Government to make a real effort to alleviate poverty and we are seeking, for instance, a 25 per cent increase in child benefit.

In general we are far from happy with what is happening in the areas of social welfare, health and education and we look to the Government, in view of the enormous windfall from the tax amnesty, which proves that there is a great deal of money out there to be collected from sources other than the PAYE sector, to make a real and meaningful effort to alleviate poverty, to create jobs and to stop the haemorrhage of emigration, much of which nowadays is forced. The real tragedy is that our highly competent and qualified young people are now going overseas and this in the long term will have very detrimental effects on our country.

I would like to take this opportunity to compliment the Government for their performance during 1988 — a year in which there was sustained growth, a combined downward spiral in inflation and interest rates and a corresponding increase in productivity. It was also a boom year for exports and to a lesser extent for jobs.

The Government have made job creation their No. 1 priority for 1989. Indeed, it must be frustrating for any administration to note that while all the economic indicators are going their way there has been no significant decrease in unemployment. The environment for investment has never been better. The financial markets have given their seal of approval to the Government's strategy, which is to create the proper climate of confidence. I believe it is now up to industry to grasp the nettle and get its act together. I have often wondered if a range of incentives, both financial and otherwise, were not available to Irish industry, whether this country would be in a far worse state. We are unique, even among our European partners, in providing all the necessary incentives and necessary back-up by Government agencies, yet private industry does not seem to be responding to the call for more job creation to the extent they promised they would given the proper climate and a reduction in interest rates and so on.

I hope that in this year of 1989, private industry in this country, in particular the multinational companies and the increasing number of large national corporations now emerging in advance of 1992, will consider reinvesting some of their surplus income earned abroad in this country rather than in spending it in other countries. I accept that many of our multinational companies not only to survive but to expand have got to consider acquiring financial and other assets abroad in the larger markets, such as in America and continental Europe. Surely, their first priority must be the home country and to adequately respond to the calls from the Government to create more viable long term jobs.

Let me now refer to the Vote for the Department of the Taoiseach. I note that sums of money have been provided for cultural and archival activities and to cover certain grants-in-aid. I would like to take this opportunity to ask once again that consideration be given to a project in County Leitrim, known as the Corn Mill Theatre Project sited in Carrigallen. It may seem somewhat strange to the more cosmopolitan cultural élite for me to talk about the setting up of a theatre in the far-flung regions of south County Leitrim, but the local community in Carrigallen which has a catchment area spread over three counties, including County Fermanagh in the Six Counties, have to date raised in excess of £30,000.

There is a theatre tradition in Carrigallen stretching back over several decades. They have won national amateur drama titles on several occasions. The local community wish to convert a local community hall into a properly functioning and structured theatre and to develop a heritage centre. If the necessary financial aid was to be forthcoming, an application has been made to the Taoiseach's Office for a sum of £50,000 from national lottery funds, this project would be up and running. Not only would this development provide sustenance for those who enjoy the theatre it would also unquestionably be a successful project and have an economic impact on the area similar to that of a small industry.

Coming as I do from County Leitrim, obviously my comments are going to be coloured in some way by how life is perceived in that part of the country. In recent months the Government have come under pressure to abandon the 48-hour rule in relation to cross-Border shopping. I know this issue is now being dealt with by the European Commission but I urge the Government to hold on to that rule for as long as possible. There is evidence to show that since the rule was introduced the haemorrhage of money out of this economy has now virtually been stopped and there has been a consequent upsurge in business activity along the Border. This has given everyone a brief respite from the economic difficulties they have been experiencing for many years.

The Office of Public Works are of relevance to my own part of the country and, indeed, to the ongoing development of the north Shannon region. I have complimented the Office of Public Works in the past and I repeat that compliment in respect of their interest in and development of the Acres Lake amenity scheme outside of Drumshanbo. A portion of the canal, bridging the Shannon at Leitrim town to Acres Lake, has been reopened and this leaves only a small portion to be reopened into Lough Allen, but such has been the success of that scheme since 1975 that there is now an urgent need for an extension of the berthing facilities at Acres Lake. I know funds are limited but in the context of the OPW's work in the area I ask that an application for the extension of berthing facilities at Acres Lake to adequately accommodate the increase in boat traffic in that area be given sympathetic consideration.

Normally one does not comment at great length on the activities of the Attorney General in our society — such is the quiet efficiency of that office that one does not necessarily have to make any comment — but in the last 15 months the role of the Attorney General has been brought very firmly into the forefront of Irish life. I should like to take this opportunity of complimenting the Attorney General on the historic, far-seeing and wise conclusions reached by him in the recent case of Father Paddy Ryan. It proved, if proof were needed — and sometimes our British friends need to see it in print — that the judicial process in this country is separate from the arm of the Executive, but that when Irish interests and the interests of Irish citizens are threatened abroad, then the constitutional duty of the highest law officer in the land is to ensure that he moves quickly to protect the constitutional rights of an Irish citizen.

There is reference in the Appropriation Act to the Land Registry. As was said a long time ago, something is rotten in the State of Denmark. I will not go so far as to say that that reference applies to the Land Registry but, something seems to be not quite right in their operations. A number of representations I have made on behalf of people looking for relatively quick transfers of land or clarification of land claims have met with very long delays.

I know the Department responsible are very conscious of these criticisms and I hope that during 1989 some attempt will be made to alleviate the difficulties in the Land Registry. The Department of the Marine, like the Office of the Attorney General, is not a Department one would expect to see involved in a controversy. In the latter part of 1987 the Department of the Marine were responsible for steering through this House the legislation on fishing licences and the implementation of that legislation during 1988. They found themselves at the centre of a very bitter controversy. I have no wish, or do I intend, to reopen the debate on the principle of the fishing licence but I would refer anyone who questions my integrity on this subject to read the Seanad debates when the Bill was going through this House. My position on this issue is on the record. It is in that context that I must criticise a person or persons unknown who in recent days extended the dispute into County Leitrim, who cheekily, blatantly and without any invitation came into my area in the stealth of night and put up signs at the various fishing lakes in the mid-Leitrim and south Leitrim areas stating that a fishing boycott was in operation. I should like to take this opportunity of informing those people, whoever they may be because they are not from the locality that County Leitrim and County Roscommon in particular, which God knows has little going for it in the area of industry, have a vital resource. They have within their geographical boundaries some of the finest fishing lakes in Europe.

We have a very honourable tradition of welcoming home and cross-channel anglers in particular and to a lesser extent continental anglers to our area. Tourism, specifically coarse fishing, is the life support for many people in my part of the country. Wherever else the fishing licence dispute may have reared its head, it has not been and is not an issue in my part of the country. I would appeal to the people who are involved in this controversy and who have, in their perception, a legitimate right to campaign, to keep their campaign in their own part of the country and to leave us alone. I go further and say to these persons unknown as who come into our part of the country in the stealth of night, trespass on private property and put up their obnoxious signs, that they will be taken down because nothing will interfere — and I speak here on behalf of the people I represent — with the harmonious relationship that has been developed with great effort and a lot of money over 40 years with anglers from all parts of Ireland and from other countries.

Another issue dear to my heart is that of emigrant welfare. The Minister for Labour has shown concern and compassion since he took office two years ago for those unfortunate people who have had to leave this country for economic reasons. He has taken a close personal interest in the welfare of emigrants in the United Kingdom. I have had the honour of accompanying him on visits to welfare agencies in the London area during his term of office. If sufficient finance was available the Minister for Labour would be the first to immediately authorise significant increases in the allocation to the welfare agencies operating among Irish emigrants in Britain. However, suffice to say that since taking office he has increased the allocation by upwards of 60 per cent. I know the £250,000 given to DION, the agency which dispense money to the various welfare agencies in Britain, is not a very significant sum of money.

I and many of my colleagues on all sides of the House have discussed time and again with Government Ministers, particularly the Ministers for Labour and Finance, the possibility of increasing this grant significantly. I want to assure our emigrants in Britain that they are not the forgotten people many in the media suggest. The Government are committed not only to attempting to improve their lot abroad but, by their job creation programme, to getting them back home again as quickly as possible.

In discussions with the Minister for Labour some months ago, an idea was put forward that perhaps representations could be made to the Department of Finance or some of the other Government Departments involved in the disbursal of national lottery moneys regarding provision in the budget for a once-off payment during 1989 for welfare agencies dealing with Irish immigrants in the United Kingdom. We are within the advent of the first budget of our newly promoted Minister for Finance, Deputy Albert Reynolds, another compassionate man from my own part of the country who has seen at first hand what emigration can do to the social and economic fabric of society. While he is a compassionate man, the Minister is also a realist. I have no idea what his thinking is in relation to the representations that have been made in recent months regarding a once-off payment from the national lottery to those organisations but I raise my voice yet again in this forum to ask that he would consider sympathetically such a request. In this context the Minister for Labour recently pointed out to me that in the United States, where so much Government energy has been expended in the interests of our emigrants there since Fianna Fáil took office, a sum in excess of £2 million is expended on an annual basis to provide consular and welfare help and support to those among the Irish community in the United States who need it. Once again I would reject totally any suggestion that this Government do not care about emigrants once they leave our shores. I personally grieve for those who have had to leave. Having been an emigrant myself I know what having to leave the bosom of one's family and one's community means, particularly in rural Ireland where there are such close knit family and friendly ties. If this Government were to do nothing else in their term of office but to bring back even a small percentage of those who have had to leave, particularly since 1982/83, I believe their job will have been very well done indeed.

The Department of Industry and Commerce have a new political boss, and the country will benefit from that. Deputy Ray Burke comes to that Department with enormous experience and an impressive track record. If that sounds like I am setting up the Minister to receive representations, it is not too far from the truth. The IDA operate under his department and their policy in the last 12 to 18 months has been to dispose of what they see to be surplus property around Ireland. This would be property or, more likely, land which was acquired for the provision of advance factories and has not been used for such. Practically every county has experienced or is currently experiencing a sell off of such land. In my home town of Drumshanbo there is a medium-sized advance factory which has been lying idle for some months. For about two years it had within its walls a temporary industry employing some 12 people. It has now moved back into Carrick-on-Shannon and recently announced a further 30 jobs which is very welcome news indeed. The factory originally housed a company called Mercial Limited who were manufacturers of high class shoe products. At one time they employed over 100 people.

I am sure the Minister will appreciate that in an area where the population is some 700 souls the economic impact of a factory employing 100 people was quite substantial and that the loss of that factory was even more substantial. I have received sympathetic responses from the IDA and the various Government agencies in relation to this factory and the hope is that it will be filled during 1989. I would like to take this opportunity of putting on the record of the House my hope that there will be an active and aggressive marketing of the Drumshanbo advance factory during 1989. With the number of companies from outside the European Community now anxious to get into what they rightly or wrongly perceive after 1992 to be fortress Europe, I would hope that the climate that has been created by this Government on the economic front will mean that Ireland's attraction as a location for industry will be greater than it has been for many years. In that climate I would hope that in Drumshanbo what is a splendid advance factory, extremely well appointed and of medium size will find itself humming to the sound of industry and of contented people before the end of 1989.

I am particularly pleased that my good friend and colleague, the Minister of State at the Department of Tourism, Deputy Lyons, is with us today. Coming as he does from a part of the country, County Cork, which has been in the forefront of tourist development, his selection for his particular brief was an excellent one. He has proved in his time there that he has a firm grasp of the realities of tourism and the potential for even greater tourist numbers here.

I know that the Minister of State has taken a particular interest in the Border counties and in cross-Border funding. I should like to compliment him and his Department on the allocation of moneys during 1988, specifically a sum of £2.5 million to County Leitrim, for a variety of infrastructural, cultural, and tourist activities which are bound to have not only immediate but long term benefits for that part of Ireland.

I want to thank Deputy Lyons for his personal interest in a project which was very dear to my late father, former Senator Joe Mooney. He fought long and hard for funding for a rather unique project, an interpretative centre in Drumshanbo, one of a number of pilot schemes initiated by Bord Fáilte. He did not live to see it, but I am very pleased to say that very shortly after his death a sum of £75,000 was allocated for that centre. I am pleased to inform the Minister that the local authority who are handling the details of it are moving swiftly to ensure that it will be up and running during 1989 and be of considerable benefit to our part of the country.

I would also like to compliment the Minister and everybody concerned in pushing forward what seems now to be becoming a flagship project for this Government in the Border region, the development of the Ballinamore-Ballyconnell canal. If this comes to fruition, and indications are that all the various Government agencies in co-operation with the international fund are coming together on this one, a sum of £27 million may eventually be pumped into the south Leitrim/west Cavan area. The economic benefits for that part of the country will be enormous. It is yet another indication of the developmental approach this Government have taken to projects such as the Ballinamore-Ballyconnell canal, a project which has lain dormant for many years despite agitation right across the political divide. This Government have grasped the nettle and are obviously going to see that project through.

During 1988 another matter of tremendous significance came to light, again in an area in which I have some expertise, that of the broadcasting field. The Minister, Deputy Burke, who retains the portfolio of Communications along with his new brief in Industry and Commerce, steered through a very difficult piece of legislation. Despite any flaws that may have been pointed out by the critics, the reality is that after ten years of pirating of our airwaves it was a Fianna Fáil Administration that initiated and executed the Bill through both Houses of the Oireachtas. I compliment the Minister not only on his achievement in doing that but also in adopting a very flexible and accommodating approach towards amendments, proposals and suggestions that were made on all sides of the House.

I know he has been criticised in recent weeks for closing down the 70-odd illegal radio operators throughout Ireland and creating a vacuum between their closure and the setting up of the new legal local stations and I subscribe to the concern that has been expressed around the country about that gap in time. However, the die was cast as far back as last summer when the legislation which was being put in place stated that the regulations and laws governing the operation of illegal stations would come into effect on 31 December. I honestly believe that the Minister and his officials, at the time of the drafting of the Bill, were of the opinion that the new stations would have been on the air relatively quickly after 31 December.

Indeed one must compliment the commission on the speed and efficiency with which they have approached their work. As of yesterday they have announced the successful franchise holder for the new national station. The new franchise holders immediately stated that they would be on the air by 1 May. I do not think anybody, even the most vociferous critics of the Minister and his Bill, would have suggested before Christmas that the national station would have been on the air so quickly. It is a pointer to how quickly the new local stations will be on the air once the commission grant the franchise for the various stations around Ireland.

Many of the illegal operators are, in one guise or another, applying for legal licences to operate. In a lot of cases they already have not only the technology, transmitters and studios but also the expertise. The closing date for receipt of applications is tomorrow. I have no doubt that the applications will be as speedily processed as were the applications for the national station and that announcements could be made in mid-February and that some of the local stations could be operating within a month. If a national station and all it entails in terms of its technological obligations and the acquisition of staff — a figure of 200 has been mentioned — can be on the air by 1 May, I see no reason why local stations which will have a much narrower field of operation cannot be on the air within days, certainly within weeks, of being granted their licences. As regards those people who have had a legitimate concern — it is a little like being on a drug and withdrawal symptoms set in after 31 December — I hope they can keep their nerve for another while when there will be a more efficient and more enjoyable local radio on the air.

In the context of broadcasting I would like to make a suggestion to the Minister for Communications. He is aware of representations that I and others have made in recent weeks asking him to give sympathetic consideration to a proposal from RTE for the extension of air time for 7 p.m. until closedown by the splitting of the wavelengths. RTE have indicated that if given this permission they will proceed rapidly to schedule broadly-based, middle of the road music programmes for a national audience. I would ask the Minister to give sympathetic consideration to this proposal from RTE, which was put on his desk shortly before Christmas, in the context of the decision he took before Christmas — a correct one I might add — to extend the life of Millenium Radio in Dublin on the principle that as Dublin had a proliferation of illegal radio operators the withdrawal symptoms would be so severe that the population as a whole would probably find themselves wondering what day of the week it was if they did not have alternative radio.

If that principle applies to our capital city, I respectfully suggest to the Minister that it should also apply to the rest of the country. It is in that spirit that I ask the Minister to give serious consideration to the RTE proposal, even on a temporary basis as he has done in the case of Millenium Radio so that the remainder of the country would have an alternative to what the Minister himself has commented on as a day-long diet of chat on RTE Radio 1 and a non-stop diet of pop music on Radio 2. It is precisely because the Minister and the Government felt that the country needed alternatives in broadcasting that the new Bill was introduced and passed.

Putting all of these arguments together I believe RTE have a good case. Without labouring the point, I know the Minister is very conscious of the role of broadcasting in our society and the effects of the illegal operators over the past ten years. If he were to grant RTE the extension of broadcasting that they propose he would be cheered by many people all over Ireland.

The Defence Forces have had a splendid year. It would be remiss of me, as a former member of the FCA, if I were not to offer my sincerest congratulations to the Irish Defence Force, who through their participation in UN peacekeeping forces, shared in the award of the Nobel Peace Prize during 1988. What a splendid body of men they are. What a marvellous contribution they have made down through the years, sometimes at great personal sacrifice, to the maintenance of peace and the emphasis on the positive side of Ireland and Irish life wherever they have gone throughout the world.

In foreign affairs a significant development of recent days should be noted, the decision of the British Home Secretary, Douglas Hurd, to pass to the Court of Appeal the case of the Guildford Four. Like many commentators, I welcomed the decision by the Home Secretary. I am, however, somewhat dubious about the eventual outcome of the Court of Appeal proceedings. I pick my words cautiously when I say that because I have had experience in the past 18 months of seeing at first-hand how the British Court of Appeal procedures work——

You do not want to fall into the Mrs. Thatcher trap now.

——to wit, the Birmingham Six appeal. I am concerned because of the comments that were made at the end of that appeal by the highest judicial officer in the land, Lord Lane, in which he cautioned future Home Secretaries not to bring before the Court of Appeal such cases unless there was an unquestionable miscarriage of justice. Here I am echoing the concern that has been expressed by the immediate families of those involved. At least it is movement and I said at the outset that I welcomed a decision. One can only pray that the British for once will admit that possibly, just possibly, they were wrong.

The four people concerned have been in jail for 15 years. They believe they are totally innocent as do many distinguished people in the United Kingdom. It is interesting that those who have been most vocal in their support of the concept that the Guildford Four are innocent are members of the establishment; two former law lords, the Archbishop of Canterbury, Cardinal Hume, several former Home Secretaries, no petty people — to paraphrase Mr. Yeats one time in this House. I would hope that all of that pressure and all of the legitimate concerns that have been raised about the case will be aired fairly, adequately and, we hope, successfully in the Court of Appeal whenever the appeal is heard.

Also in the area of foreign affairs I want to compliment this country and the unnamed diplomat who decided bravely to take the initiative at the recent discussions in Paris on chemical arms disarmament. When the South African Foreign Minister stood up to address the conference and the African countries led a boycott out of the hall the Irish diplomat alone among his European Community colleagues, stood up bravely and courageously and walked out, too. If ever there was proof that this country has an independent line in foreign policy that was one of its shining moments.

In the context of chemical weapons, again as I did previously, I unreservedly, condemn those countries that have broken the Geneva Protocol of 1925. What a horrible vista for the world that countries would stockpile and use such vicious weapons mainly against innocent civilians. While I welcome the unanimous conclusions arrived at at the Paris Conference, action speaks louder than words. Here I would single out especially the Iraqi regime. Despite disclaimers, every indication from neutral sources is that they abused the 1927 Geneva Protocol in the recent war with Iran. Believe me, I am no apologist for the Khomeini regime but nobody could have been more emotionally moved by one of the photographs that has been flashed around the world in recent weeks of the Kurdistan resident lying dead on a pavement with his arm held in a feeble attempt to protect a nine month old baby lying dead as a result of the use of chemical weapons. I hope that this Government will take every and any opportunity, despite any trade and diplomatic ties we may have with any country, to condemn unreservedly this barbaric activity by so-called civilised nations.

Development aid has been mentioned by several of my colleagues on all sides of the House. Again, like them, I wish to support any moves that would increase our total contribution to overseas aid. I talked about the emotional response to the baby dying in Kurdistan; one can have an equally emotional response to the pictures that flash daily and weekly on our screens from the starvation spots of the world. I know ours are a compassionate Government and I know that the people involved in the processing of overseas aid are Christian, decent, compassionate people, but I also realise the economic realities, that there are difficulties across the board in this country inherited and inherent and that Ireland can only make the best contribution it can in the circumstances prevailing at the time. However, I add my voice to the voices of people in non-Government agencies who are constantly seeking an even greater response from this Government, from previous Governments and, I have no doubt, from successive Governments. At least I can say to them that this Government are fully conscious and take every and any opportunity to help in their small way to alleviate the sufferings imposed and inflicted, in many cases not just by climatic conditions but by man's continuing inhumanity towards man.

I compliment the Department of Social Welfare on the savings that have been made by their efficiency over the last 12 months. I add my voice to the voices of people on all sides of the House in this debate to ask that in the coming budget the Government give, where they can, to the under privileged. It is obvious from the various reports that have emanated from State and non-State agencies over the last 12 months that there is a real poverty gap, that there are people who are genuinely suffering and who are below the poverty line. I know the Government are aware of this and I hope that come next week we will see a significant manifestation of the Government's concern for the under privileged and for those who are finding it more than difficult to make ends meet. I am thinking specifically of the long-term unemployed with large families. It is not true to say that a majority of such people do not want to work or that a majority of them are making more on social welfare, have no incentive and, if given a job, will not work. I have met very few people who, given the dignity of work, decent honourable work for which they would be given a fair wage, would refuse such an offer. There are people who are deliberately and consciously staying in this country with large families, heavy mortgages and no jobs but who believe and have faith and confidence in this Administration's ability to get the country right. It is those people I would ask the Government to consider next week. I have no doubt that come budget day we will see significant improvements in certain areas of social welfare payments. I remember a previous Haughey administration when the inflation rate was something of the order of 9 per cent or 10 per cent. Since his days as Minister for Finance the Taoiseach has shown compassion for the less well off and the disadvantaged in our society. He authorised an increase of 25 per cent in social welfare payments at that time. I can remember well the reaction of most commentators. It is within the will and capabilities of the Government to make significant increases and I am sure we will not be disappointed.

I move now to the Department of Energy. I should like to take this opportunity of publicly thanking the Minister for Energy, Deputy Michael Smith, for taking the time to come among us in the Roscommon-Leitrim area yesterday. He came on a fact-finding mission.

An indication of the Minister's concern and commitment was that he travelled alone — casting no aspersions on civil servants or Government or departmental officials who do a marvellous job because he wanted to hear and see at first hand the difficulties that will be faced in the north Roscommon, mid and south Leitrim and, indeed the south Sligo areas by the inevitable closure of the coal-mining industry in that part of the world before the end of the century. With the closure — an inevitable one which is accepted by all sides because the resource is running out — will come the closure of the ESB generating at Arigna set up by the Lemass Administration in 1958 and which currently employs 57 people. The coalmining industry itself currently employs about 200 people. The population of County Leitrim as a whole is not in excess of 27,000 and in that area there are 250 people employed directly or indirectly in one industry, an industry that is indigenous to the area.

The leaders in that industry — although there are many other mine owners — are the Leydon family who have mined in the area and provided much needed employment in good times and bad for more than 150 years. It was to that environment that the Minister for Energy came yesterday. I am pleased to say that in his usual quiet but efficient way he gave indications that he is fully conscious of the implications, economic and otherwise, of the closure of this industry. Those indications would suggest to me that County Leitrim will see a viable alternative long term industry established there in the very near future. That industry will, hopefully, be based on the one vital natural resource the county has, the ability to grow trees faster than anywhere in the world. It is in the area of forestry and tourism that I believe my part of the country can only hope to survive.

In that context I would respectfully ask, following representations on behalf of small farmers in Leitrim, west Cavan, north Roscommon, and south Sligo where the land in some cases is suitable for forestry, that some incentive be given to them. I am not necessarily looking for more Government handouts but we must consider that most of the land of County Leitrim is not suitable for tillage farming; 90 per cent plus is marginal. Those who operate as farmers are in the main people who hold dry stock with some dairy farming. In many cases Leitrim farmers are surviving on the margins; indeed, one could apply that to many parts of the west of Ireland. If one has an average holding of 20 to 30 acres that does not produce anything except rushes, and all one can put on it is cattle, one has to find a job somewhere else. If there is not a job to be found then one must survive on the margins. It is very difficult to encourage such a land owner to go out and plant trees from which he will not see any benefit for ten to 15 years when he wants money to put food on the table for his family. If his sons and daughters are in their teens they may have to take the emigrant ship like so many before them. I am asking that there should be some incentive given to small farm holders, particularly in the west of Ireland. The Government strategy seems to be directed towards encouraging more tree planting in the west. Those incentives should be totally separate from the incentives which are currently available from the European Community. They are quite generous, indeed, at 85 per cent in some cases. But they are only for the planting and maintenance of the trees and only in the initial period of capital outlay. For the remaining ten to 15 years a farmer has to watch whatever portion of land he has planted with trees and wait, but there will be no money coming in.

The Department of Agriculture, and the Minister of State responsible for Forestry, Deputy Liam Aylward, are conscious of those things as is the Minister for Energy. I hope that during 1989 some concrete proposals will be put forward to help to alleviate the difficulties facing farmers in my part of the country. In the context of the news last night that farming incomes had increased by 17 per cent last year it is worth mentioning an old saying that farmers never admit to having a good year. I am not really one of those whose philosophy is the béal bocht.

I prefer to talk in realistic rather than emotional terms, particularly where my own part of the country is concerned. I do, however, feel I have an obligation to put on the record of the House the real difficulties being faced by small farmers not only in my part of the country. When I reflect on statements of how good farming is and consider the large ranch style fertile lands of the south of Ireland I say, that is where the money is being made. It certainly is not being made in the west.

I should like to ask, in the context of forestry, that the Minister give some consideration to extending the planning legislation to include forestry. In the west, active encouragement is being given not only to the indigenous population — the small farmers — but to large corporations to plant trees. Because of the absence of adequate planning laws trees are being planted in some cases right up to the back doors of farmhouses by large companies, corporations, pension funds and insurance funds. Surely, this cannot go on. We had an incident during 1988 in my constituency where, as a result of local agitation aided by public representatives, the attempt by local landowners, non-nationals, to plant trees in a specific beauty spot around Lisadell and the Yeats country, was successfully thwarted I am glad to say. That occurred only because of the agitation locally and the bad feeling that would have developed if the proposal had gone ahead. The people concerned did not have the support of legislation. Surely, if we are intent on extending substantially and significantly the acreage under forestry it cannot be done willy-nilly. There must be some merit in the argument that the planning laws be extended in some way to put a brake on such people who have no loyalty to the area other than to make money in it without in any way stifling enterprise.

On that note like many before me from my part of the country who conclude by referring to the small farmers of County Leitrim, I once again compliment the Government on the overall economic strategy they adopted and successfully executed over 1988. I can only hope and pray that the decisions taken during the last 18 months of this Administration will start to bear fruit during 1989, and beyond.

Drumshanbo is a very hard act for me to follow and I am afraid that the parochialism of my views may be in some contrast to the distinguished contribution of my immediate predecessor. I will try to rectify this in some small way by addressing myself first to the subject of foreign affairs which is an area in which the House generally is very interested. One of the sad things during the year was that although we had a very wideranging debate on the necessity to establish a joint Oireachtas committee on foreign affairs under the official aegis of the Government and the Department of Foreign Affairs, this was turned down. We have in fact established such a committee, a committee of Members of both Houses of the Oireachtas which is up and functioning and which is in contact with the other foreign affairs committees of the various European Parliaments. I hope that this Government will not continue to prove niggardly in this regard and that if they lack the energy to provide this very necessary service to the Parliament, they will at least do the decent thing and provide some funding for the entrepreneurial efforts of Members of both Houses in establishing our own committee in an area in which everybody agrees it is important that we join all the other nations of Europe in having just such a committee. It is increasingly clear to those of us who participate in debates on foreign affairs that this committee would have a very necessary role. Even in its current limited existence it has a necessary role in trying to establish some degree of accountability to the Irish people in terms of foreign affairs.

There were debates during the year, for example, with a specific relationship to this debate about appropriations, because moneys were described as being one of the principal elements in decisions with regard to the establishment of diplomatic missions, and the full recognition of friendly states such as, for example, the state of Nicaragua. There was a debate in this House on the necessity for establishing full diplomatic relations and giving diplomatic accreditation to the state of Nicaragua. The only argument against that proposition on the Government side related to money. This did not impress anybody and I doubt if it even impressed the Government side. The argument that money was the only reason for not establishing an embassy was not convincing. We have an ambassador in Washington who also takes in Mexico. If one considers the amount of air fares involved, if we had a non-resident ambassador appointed to Nicaragua for the purpose of the moral protection of the independent sovereign and democratic Republic of Nicaragua, the cost would be absolutely negative. It is important to get some degree of accountability, that we understand why these decisions are really being made, because the economic argument is not at all convincing. The establishment of a proper foreign affairs committee would be a significant move in the direction of allowing the Parliament of this country to understand the motivation behind the sometimes very puzzling decisions made on our behalf in the Department of Foreign Affairs.

I can refer to a couple of other puzzling decisions. We do not have a resident ambassador of the State of Israel and that would be exceedingly important. This does not mean that I speak from an uncritical position of support of the State of Israel. I am a supporter of that state's right to exist. I regard myself as being in a generally friendly position towards that state. It is a part of the world I have visited frequently, not just the state of Israel but also most of the surrounding Arab countries. Like many other people in this country I am seriously concerned about developments in that state, in particular the treatment of the Palestinian Arab population particularly in the West Bank and occupied territories, but it is impossible to have an informed debate if one of the participants have their hands tied behind their backs. It is not widely known that the diplomatic representative of the State of Israel is only permitted to be in this country about one fortnight every month and is operating out of a hotel room. That is not professional diplomacy. Because we have considerable diplomatic skills I hope we in this country will engage in professional diplomacy. It amazes me that we are so delicate about allowing the establishment of an Israeli embassy here, and we do not seem at all bothered about the antics of Colonel Gadaffi. I wonder why? Is this again an economic argument? There seems to be very serious cause for concern that Colonel Gadaffi has been supplying enormous quantities of arms and explosive materials to subversive organisations in this country. We have an ambassador accredited to Tripoli. Is the concern of this Government being made sufficiently strongly felt in Tripoli? It obviously cannot be, because it is making no apparent impression whatever on Colonel Gadaffi.

It is important that we develop a sophisticated and responsible line of approach to a state like Libya. I deplored at the time, the attack by the American Air Force on that country. I also deplored the provocative naval exercises that recently took place. They were deliberately designed and calculated to provoke a military incident and I am glad that they seem largely to have failed in that aim, but at the same time it is very interesting to note that the factory that was apparently a major source of concern to the American administration appears now very clearly to have been designed specifically for the production of the instruments of chemical warfare and not only that, but that members of the European community of nations quite callously and deliberately took part, for purely economic motives, in assisting the production of these deadly weapons. That is something into which we are entitled to inquire.

The countries in which we feel we can afford to have embassies are a very strange choice of countries but I would like to feel that in those countries we can be reassured that we make use of these facilities. A very interesting example crops up in my mind as to the strangeness of our choice of countries for embassies. Although we cannot afford an embassy in Nicaragua where we have a clear coincidence of interest, historically, culturally and ethically with this oppressed people, in that nothing could be a closer parallel to our own history and our own development of sovereignty than the situation in Nicaragua, in Europe we have two embassies within a mile of each other in Italy. Why do we have an embassy in the Vatican and an embassy and an ambassador in Italy?

I do not wish to be offensive but this extraordinary situation, coupled with the fact that the Papal Nuncio is recognised automatically and by virtue of his position as the doyen of the Diplomatic Corps, which is a matter of considerable expense to the Irish people, suggests to me that the removal of Article 44 of the Constitution which recognises the special position of the Roman Catholic Church in this country was a purely cosmetic exercise and meant absolutely nothing whatever because nobody takes seriously — at least I do not take it seriously — the idea that the Vatican is a real state. It has only got about 1,000 citizens — perhaps I might be 100 or 200 out — but is a very small State in terms of numbers of population. Yet if you balance that against the situation in Nicaragua you have a situation where many millions of people are not regarded as being sufficient to allow us to provide an embassy. Yet for that very small notional State — the Vatican — we provide an embassy.

It appears to me that this is a recognition of the admittedly extraordinary and appropriate religious significance of this entity rather than of its existence as a State in terms of the ordinary notions of diplomatic recognition. This concerns me. I wonder if the Department of Foreign Affairs cannot consider these two things in parallel? How is it that we are able to afford two embassies, basically in the same State within a radius of a mile of each other, and none throughout almost an entire sub-continent? That worries me. There is a lack of proportionality there that needs to be investigated.

I welcome the strong position taken by the Minister for Foreign Affairs with regard to the position of the South African Government. I echo what Senator Mooney said about the courage of the diplomat at the Paris Conference on Chemical Warfare. I must say that, from reading the newspaper accounts — and that is all I can rely on because there is no disclosure, there is no Foreign Affairs committee — it seems perfectly clear to me that this man risked his career and acted entirely off his own bat. I do not believe for one second that there was an instruction from Iveagh House that he should do so. If I am wrong in this perhaps I can have some information on it. But until I am provided with such solid information, I have to place on the record of this House that I congratulate this gentleman on his courage, particularly in view of the fact that I do not believe that this line of action was indicated to him from Iveagh House. I am perfectly certain it was not. I expect he got his knuckles well rapped for doing it. Within that context, I congratulate him.

I also wonder — because I had my name attached to a resolution suggesting that we break off diplomatic relations with Libya — why do we not break off diplomatic relations with South Africa because we do have them? It has been stated on the record of this House that we do not but according to my Administration Yearbook, which I regard as a kind of political bible, we do because we have an honorary consul in Johannesburg. There may be a reason for this. Perhaps the reason is that in circumstances such as, for example, in which a presumed descendant of one of the 1916 leaders, Major John MacBride, is undergoing trial it gives us some degree of leverage. It took me a long time to work that out. That is the only possible justification I can see. I would like to know why we have this diplomatic representation with South Africa because apparently it exists. In other words, what I would like to tease out is what is the underlying principle behind the granting of accreditation to the various countries because we have quite an absurd and motley collection of the countries to whom we do grant accreditation. It is extremely important that we get some kind of accountability.

There is one other area in which I believe we must have accountability. It is one in which I am sure the Minister will have a particular interest, that is at the United Nations, with the various international organisations represented through United Nations agencies and committees dealing with women's rights. Spokespersons on women's rights do take up positions in these various bodies on behalf of the women of Ireland. Very often we are not made aware of who they are, why they are there or even what they have said. I am sure the Minister of State, as a distinguished member and possibly chairperson of the Oireachtas Joint Committee on Women's Rights previously, is aware of this position and will be concerned about it. Again, I revert to this notion of accountability. In respect of that committee, it would be extremely useful to know what positions are being taken up and advanced to international bodies on behalf of the women of Ireland and in the name of the women of Ireland. It would be information that would be extremely useful to that committee and would help to inform their discussions.

I would like to turn to a couple of other matters in which the Minister would have a particular interest. Generally they concern the area of tourism and the impact the proposed integrated plan for the city of Dublin will have in this area. This Government have shown verbally an understanding of the fact that tourism is one of the principal and most significant economic factors in the recovery of the country and that within that area, cultural tourism is the sector that has the greatest capacity for growth. This is one element that must be taken seriously in this integrated plan and I believe that the Minister will agree with me on this.

I should like to place on the record my admiration for the Minister and her sterling performance yesterday morning on the radio when she defended a quite difficult position with great verve and skill, although I am not sure that I was entirely convinced, particularly on the question of the representative nature of the bodies who will be making decisions about the integrated plan. It was trenchantly and appropriately pointed out that with regard to the plan for the city of Dublin, for example, no less than four farmers bodies were officially involved in the process leading to its creation. Of course there are farming interests particularly in north County Dublin, with fruit production, horticulture and so on, but this is the capital city of the country.

There is a disproportionate urban concentration around Dublin on the eastern seaboard and that must be recognised. It is a great shame and pity and it will weaken our approach that there has not been proper consultation with community bodies on the ground; there simply must be. It is important also economically; there is no question of doubt about that. This is one thing that will vitiate important and far-sighted projects such as the Custom House Docks scheme, the fact that there may not be, and in my opinion, has not been, anything like sufficient consultation with the deprived communities among whom these things are going to be located. If it is going to be an integrated plan it must be integrated not just economically but also socially and in terms of the infrastructure.

It is important to stress the cultural aspect of the path towards economic recovery. It does cause me some concern to learn that Dublin is going to be the cultural capital of Europe in 1991. It does not mean that I do not welcome it but I am little bit worried by the kind of statements I hear, such as that there will be plenty of money to spend in 1991. That money must be spent, starting now. We just about got away, by the skin of our teeth, with the Dublin Millennium. It was a miracle that it was not a disaster.

I would, however, like to place on the record of this House my gratitude and admiration for the Dublin City Manager, Mr. Feely, who I think has been rather begrudgingly treated in the coverage of the Millennium because, after all, it was his wheeze, so to speak, and it did have an impact on the city. I think he should be congratulated. If we are not going to be mean spirited about it, I think the part he played was very significant and it is important that persons like myself who frequently criticise civil servants and personnel in local authorities, when I think it is necessary to criticise them, should place on the record some degree of congratulation. However we should take warning from it.

The Millennium preparations were only getting under way half way through the Millennium Year, and the same is going to happen, I am afraid, with regard to this notion of Dublin being the cultural capital of Europe in 1991. I would like some firm indication that something is going to be done. I would like to invite the Minister, for example, to travel to Glasgow which I understand is going to have this honour sooner than we are. It is a city which had a very bad reputation but it learned how to make use of whatever resources it had. I would hope that we might learn from the city of Glasgow.

I mentioned earlier that there had been some verbal indications that the significance of cultural tourism was being recognised. In my experience, and I do quite a lot of work in this area, they are very largely verbal. There has been virtually no follow up in terms of hard cash. I know it is very vulgar in a national Parliament to talk about hard cash, and that political people, particularly Ministers, are very sensitive. I would not want to upset anybody by mentioning money, and the only reason I do it is that in every area of involvement in public life I continually come up against the little red line of cash.

I could, of course, mention a number of things which could be done. In 1991 Dublin will be the cultural capital of Europe — splendid. In 1991 it is our intention to have established the first James Joyce Cultural Centre in this city. That may sound parochial but Joyce is a word to conjure with, a name to conjure with internationally. I have no doubt the Government are well aware of this. Yet, what has been done to honour Joyce? Virtually nothing, despite the fact that this is an enormous asset for the country. I think it is a pity that all we could squeeze ourselves to do in the year of Joyce's centenary was to rename a bridge in Chapelizod. We renamed something else in honour of Seán O'Casoy, and we renamed a block of flats after Brendan Behan. That was very nice of us but let us have some real investment and in particular, just as one small indicator, I would like something done with regard to the Joyce Cultural Centre.

This building that was about to be demolished by Dublin Corporation contains superb 18th century plaster work by some of the best stuccoers in Dublin. We managed to rescue it and reroofed it. We got a group of young international volunteers to come in and clear it out and we are well into the second stage of the recuperation of the building. It is our intention by 1991, and this was a coincidence, to have it opened to the public not just as a cultural centre but as a show case for everything that is best not only in Dublin but in Irish manufacture, such as Waterford Glass chandeliers and Donegal carpets, so that when people come they will see the excellence of which this country is capable.

We applied for funding, we applied for national lottery funding, we applied for funding from the European Community and we applied for cultural grants from Europe but what do we find? Always, incessantly, without exception, we are stymied by the Department of Finance and by the Office of Public Works who gobble up all the grants. There is virtually no room left or allowed by the public agencies for the kind of initiative we have shown in this area. I am not trying to take this entirely on my own shoulders and prop myself up because I am moving into the background. I am only taking this opportunity today.

We have an excellent young administrator, Des Gunning, working there virtually unpaid, trying to surmount all these difficulties. We have received a tremendous amount of support internationally, but the one thing we do not get is a little injection of hard cash, even through the lottery. I strongly hope and urge that this will change and that some notice will be taken of the fact that in 1991 one of the things people will ask is: how are you honouring your writers?

We have three things in this country, architecture, literature and music. Literature and architecture are the two leaders, they would be the brand leaders if we were in a supermarket, but we really have not done very much. We have done a thousand times more to encourage angling for a thousand times less return in terms of tourism. Why do we not wake up? I could go on ad nauseam, I am afraid, about this because I think it is very important.

I am only briefly going to touch on the forthcoming budget because I am very hopeful that something may happen here. I would like to see a recognition at the level of Government decision of the importance, as an asset, of the 18th century architecture of the inner city of Dublin, a recognition of the fact that it is actually threatened and that it is an asset. Perhaps I can put into context for the House why I think this is important and why we should recognise it. I remember a number of years ago when I was lecturing in Beirut I wanted to go and visit some other countries. Eventually, by a series of accidents, I got held up in Jordan. There were some difficulties about papers but they treated me very kindly and arranged for me to be taken out by an official with the Ministry of Tourism to a marvellous Roman city called Jerash.

I went there with this guide from the Ministry of Tourism. I complimented him and said the place was simply wonderful. It was an astonishing city, and reminded me of New York. There were huge Corinthian pillars stretching up, dwarfing the human scale. I said this was absolutely marvellous and that I had no idea there were such places there. I apologised for my ignorance and said I certainly did not realise that they had such a marvellous programme of architectural archaeological restoration. He said: "We are not interested in that, that is not Arab, that is Greek or Roman." I asked: "Why on earth are you doing this wonderful work?" and he replied: "Jordan, she poor country, she have no coal, she have no oil, she have no steel, but they dirty things. You dig from the ground, they exhaust, they gone, they leave dirt, they leave no jobs, they leave no money. But the old buildings, we do not like them but the Americans like them, the French like them, the British like them and apparently you, the Irish, like them and they stay. They not exhaust, they stay, they clean, they not dirty and they continue to give money." I said: "I wish to God you would come back to my country and bring this wonderful Oriental wisdom with you" because here we have the original cauldron, magic cauldron, that continues to generate resources from the community without being depleted, but we have not recognised that.

I acknowledge, of course, that there was some cultural difficulty when we were a little bit more ignorant, a little bit less secure about ourselves and a little bit less mature and a number of our prominent people, including former Ministers of various parties, I will not specify them, felt that this inheritance of what they called the belted earls was something we could well do without and that it was an expression of a kind of colonial oppressive régime and so on, which is an immature view. Whatever about the lifestyle of the people who lived in the 18th century, they are gone, they are dead, and well and truly rotten. What we are left with is the capacity of the Irish craftsmen, stuccoers, ordinary workmen, carpenters, people involved in wood turning and so on to produce articles of the highest European excellence. It is up to us to protect them. They are not being protected and I am sure the Minister is aware of this. I look forward, and I believe it is possible, that the Minister for Finance will include provisions to protect these buildings.

I will only mention this very briefly because I have made submissions to both the previous Minister, Deputy MacSharry, the present Minister, Deputy Reynolds, and the Department of Finance indicating that there are anomalies in the legislation that are constantly being promoted by the Government to suggest that the inner city is the subject of major tax incentives. That is incorrect and the Department of Finance have accepted that my evaluation of the tax law is, in fact, correct and that the retention of 18th century buildings in this area is actually militated against by a reading of section 23 and section 44 of the Finance Act. Not only is no incentive provided but the tax laws actually constitute a major disincentive to restoration. I look forward to that being rectified in the coming budget, and I sincerely hope that it will be, because it will not only make a more beautiful city for all of us but it will also provide an important financial resource for the citizens, not just of the city but also of the country.

I would like to mention a few other matters that arise under the heading of different departments. I would like to turn my attention to the Department of Health, and express some degree of concern in certain areas here. I will start by indicating a rather small area but I think it is an important one in the human context. I am afraid I am not always able to read all the reports from the Dáil, interesting though they are, but there was a debate during the year which highlighted the problems of people seeking cataract operations, particularly elderly people living alone in country areas, and the very considerable delays being experienced in getting access to this treatment. I mention this because the Minister of State Deputy Leyden, who took that debate seemed to echo the concern of the Deputy who raised the question. I hope that this matter will be looked into by the Department of Health and that some amelioration of the position will be found during the coming year.

I am also concerned about the whole question of AIDS. I am not going to take a very long time to talk about this because I am very glad to say that we did, as the Minister I am sure knows, have a wide-ranging, informed and serious debate on the subject of AIDS in this House at the instigation principally of the Independent Members but it was one in which all sections of the House joined in a most responsible fashion. I continue to have concern in this area as, among other things, a member of the board of the AIDS fund.

It is noticeable that from time to time pressures are brought from the general health areas, the Department of Health or the Eastern Health Board, to have funding made available through voluntary organisations and so on, but such moneys would be much more appropriately made available directly through the Department of Health, the Eastern Health Board or whatever health board are responsible. Through the next year I will be looking very closely at the way in which moneys are allocated and the way in which pressures are brought to bear on voluntary bodies to make up deficiencies that should be made up by the health board or the Department of Health.

In this context I would like to say that I am very glad that various voluntary agencies resisted pressure on them to make up certain funds in a number of areas and that, for example, the extremely valuable work done in University College, Dublin by Professor Irene Hillery and the virus reference laboratory has been recognised and that after an unconscionable delay and miserably protracted negotiations it appears now that this important work will be properly funded. This kind of delay and pettifogging negotiations should not be entered into because I would make the point that voluntary organisations need to supply the real and inescapable deficiencies of Outreach in this area and not to be left with the responsibility of attempting to make major capital funding available to what should be State financed enterprises. I will leave that aside because, as I say, we have had a considerable debate on it.

There is another area, however, that I really believe needs to be highlighted, and that is the question of the comparatively small number, in terms of the general population of haemophiliacs who, having been treated with Factor 8 blood products, have now been discovered to be in the position of being HIV positive. I think this is a very special situation and I say that being very careful not to commit the outrage that I am sorry to say certain political and religious leaders have of drawing distinctions between innocent HIV positive people and those who on the other hand are apparently guilty. I do not think there is any question of innocence or guilt but the haemophiliacs are a very specific problem. I would also like to say — I am sure the Minister will agree with me and I hope the Department of Health officials will also be sensitised to this — that the language in which this subject is approached should be one of delicacy. The phrase that is now very movingly adopted by people who are HIV positive themselves or who indeed have AIDS is not sufferers or victims or infected or anything like that, it is "People living with AIDS".

Senator Norris, as you said earlier, we have already had two lengthy and very positive discussions on AIDS. We are on the Appropriation Act and, just to put you in line that relates to absolute expenditure.

I am grateful to you for the guidance, a Chathaoirligh. I was actually creating a context to make one specific point and that is——

From my point of view as Cathaoirleach, it is expenditure we are discussing. You may have been going to make a point but you were taking a long time in getting there. I am just checking you at this point.

I accept what you say and I will come directly to the point. The point is that there is a question of compensation and I hope that some provision would be made in the Department for a degree of immediate funding for haemophiliacs who as a result of being treated through the health services with Factor 8 blood products now find simply through involvement with the health services that they are unwittingly involved in the situation of having AIDS. I believe that because of the existence of, for example, dependent families and the necessity of making some immediate provision, it is important that this should be highlighted and should not be long-fingered. I understand that haemophiliacs in particular may have grounds for legal action but this is a very lengthy process and it could well be that a number of people would, in fact, have not survived to the point at which there was a successful outcome and for this reason I think it appropriate that provision be made now for some funding for these people.

I would like to mention also the question of — and this is directly related to funding — the responsibility of the Department of Education in certain limited areas. It has been drawn directly to my attention that during the period of the so-called "Gregory deal" provision was made for the building of a school in Waterford Street/Marlborough Street, a commitment was given that funds were being allocated for this purpose and a site was earmarked. This would allow the VEC to move to this new school from St. Garvan's technical school and also from a building which they most inappropriately use in North Great George's Street. Despite repeated assurances and despite the asking of questions by Deputy Tony Gregory in the Dáil, this very clear and specific commitment has not been lived up to. I would like an indication, if this is possible, that this programme would be embarked upon. There are a number of reasons for this. First of all, there is considerable allocation of funds still, apparently almost on a kind of class basis, but yet the most deprived areas seem to get the least. It is not viable, for example, that the Loreto Order were facilitated in moving from North Great George's Street out to Swords which is a nice comfortable middle class area, and yet just down the street this very deprived area of the inner city which had the tantalising commitment of funds dangled in front of its eyes, does not have its promises honoured.

This is important also because it ties back in with what I was saying about the necessity for making some real practical gesture in terms of the historic, architectural heritage of the city. The house I referred to in North Great George's Street is a very fine house, once the home of Sir Samuel Ferguson. It has been very badly treated by the VEC. It would be a major asset for the city of Dublin, and I know from my involvement in the negotiations that the then Manager of Dublin Tourism, Mr. Matt McNulty, who had such a spectacular success with Malahide Castle was very interested at one stage in acquiring this for the purpose of restoration as a representative 18th century townhouse into which it was intended to put an important collection of 18th century furniture. If anybody thinks that is not a tourist draw, I can only say that they did not visit the ESB house directly across Merrion Square from this building which attracted a consistent flow of people.

This is the kind of thing that we need in this city, rather than leaving it in the hands of an inappropriate body. The kind of work done by the Vocational Education Committee in this school is very important. It works with deprived children; but why does work with deprived children have to be done underneath magnificent ceilings of which they are blissfully unaware, at which they flick darts and pieces of chewing gum? It is an absurd misuse of plant and equipment, and I hope that this is the kind of thing that will cease. I would have to say, and I say it with regret, that the VEC have really quite a scandalous record in terms of the abuse of 18th century buildings in this city. One has only got to look at Parnell Square where they allow their property to be vandalised, a Bossie fireplace to be hacked out, the windows left wide open. It is very little encouragement to the ordinary people of this city to make provision for the retention of this part of our heritage if public bodies are so scandalously irresponsible in such matters. It did not escape my attention that having refused some years ago to part with this house for a proper development which would benefit tourism, the entire back premises of this house were levelled to provide a car park. This is an abuse.

I would like to end by just mentioning a few matters which relate directly to funding and place on the record of the House my puzzlement at some ministerial answers. I am not quite sure whether it is appropriate for me to say that Ministers may have been misinformed or that they misled the House. I know that I cannot say that they were——

You do not say Ministers are misinformed or misled any House in my presence. So you will certainly withdraw the last comment. I do not know about the first.

Well I have not really said it.

You said it.

No. I am saying I was not sure whether it was possible to say these things. I was searching desperately for a formula. Perhaps I could just record my puzzlement.

Yes. We will start again then.

I would like to record my puzzlement on a number of occasions in the House at the provision of certain information. Perhaps it would be easier if I gave a couple of examples so that then people reading the record would be able to understand why I am puzzled.

One was when the Minister for Justice assured the House that it was possible that there was no necessity for accepting amendments protecting the travellers and the gay community under the discrimination legislation because the kind of material that was produced in evidence in the House, if referred to police officers, would be subject to prosecution under the existing law. I understand that this was done and was not the case. But the real one that I was curious about——

Senator Norris, I hate interrupting any of my colleagues but this is an expenditure debate and your address here, since I came back into the Chair, really seems to me to be an address to the nation on what we should be doing or have not done. Would you get back to expenditure and what you might like the Government to do or not to do.

Yes, I am very glad——

You commence every section by stating that you are going to talk on expenditure and then refer to what the Ministers did or did not do and to your puzzlement. Just get back to the Appropriation Act and I will stop interrupting you.

Thank you very much. I will do exactly that, but let me continue my puzzlement just slightly in regard to an item of expenditure. We had a very interesting Adjournment discussion on the necessity for providing funds from the lottery, for example, for the rebuilding of the Hirschfeld Centre, and the Minister was extremely apologetic — particularly in the light of the fact that there was all-party support in the House, including from the Government, the Taoiseach's nominees and everybody else that this is a most worthy and absolutely essential project and that money should be provided for it from the lottery — to have to tell us that there was no money left in it. Now I must say I have found it puzzling subsequently that so much money was found in the days immediately succeeding that debate.

I would like simply to place on the record of the House my puzzlement and my anticipation that the next time this comes before the House, as it undoubtedly will, the money will in fact be found, because I think that this would be an important expenditure of money and one that would be very appropriate.

I always like, a Chathaoirligh, as you know, to end on a positive note. There is a big number of speeches in congratulation of the Government, principally of course from the Government benches. I am prepared to add my little groat's worth here and say that I am, first of all, very pleased with the way in which the Government have restructured the Arts Council and I think that the importation onto the Arts Council of the financial and managerial skills of people who have great expertise, such as Paul McGuinness and Michael Colgan, will immensely add to the wisdom and balance of decisions made within the Arts Council with regard to the disbursal of funds.

I am very pleased indeed that a substantial sum of money was made available for the refurbishment of the premises known as the Firkencrane in Cork which is the home, among other things, of the Irish National Ballet, and I am particularly pleased at the personal intervention of the Taoiseach in order to save the programme of the Irish National Ballet and to congratulate them on having provided finance which will enable a major full length ballet on the subject of the life of a great Irish artist, Oscar Wilde, to be completed and I think this is precisely the kind of thing that our European partners will be interested in. I understand that there is already — and this just shows how well money is being spent — very considerable interest in this project from European television networks. This is precisely the kind of usage of money that is appropriate.

With regard to Coillte Teoranta — which is known as the inheritor of the Land Commission, the Department of Forestry and so on, the bodies charged with its responsibilities — I am a little bit concerned, in the light of the history of the Land Commission and the Forestry Department and their treatment, for example, of what are national assets, such as Coole Park, the home of the late Lady Gregory, which was demolished. I know we cannot reverse the sins of the past but I would like to feel that whatever new body takes over is aware of the responsibility to the architectural heritage that may occasionally come accidentally within its orbit.

I would like particularly to mention something that I hope an interest could be taken in. Last weekend I was in Counties Cork and Waterford and travelled along the beautiful Blackwater valley. I visited Dromana House and saw the ceremonial gate which is quite unique in this country. It was built in the style of the Taj Mahal. It is a very famous architectural landmark and was restored about 15 or 20 years ago by the Irish Georgian Society. It is in the control of either the local authority or the forestry commission. Curiously and, to my mind, most regrettably, a condition was laid upon the Georgian Society in the restoration process that nobody should be allowed to live in it. That is counter-productive because inevitably it is once again being vandalised, the Gothic windows burst out of it, the wood is perishing and the building is going once again into a state of dereliction.

I would like to see some kind of responsibility towards these architectural gems that are part of our heritage and that, as I have said, come accidentally into the hands of agencies such as these. I would like to think they would be sensitively treated and protected so that they may be exploited by us as part of our asset as a major tourist country.

I am pleased to have the opportunity of making a contribution in this debate. At this point I would like to congratulate the Minister of State, Deputy Máire Geoghegan-Quinn, who has special responsibility for European affairs, for the excellent work she is doing, in the context of the national plan, to avail of EC funding. We are now almost two years down the road since the Government launched their plan of action on the Programme for National Recovery. The initiatives taken have put us firmly on the road to economic recovery. We hear a lot about the national debt, the budget deficit and so on, but I have a very simple perception of all this. The notion that you can continue to run a country on borrowed money, money borrowed not just from our own people but from Germany, Japan and the USA, to the tune of £800 million per year, is nonsensical. Anyone involved in business is only too well aware of this. It is not just bad business; it is essentially selfish to impoverish our children and our grandchildren by leaving them to pick up the bill in the form of interest payments on our borrowings to the tune of some £2 billion each year, which we are not able to pay for from taxes.

As we all know, in the four years of the Coalition Government the national debt doubled from £12.5 billion to £25 billion. It is an accepted fact that had this Government, on taking office, continued to spend at the same rate the debt would have doubled again in another four years. I am pleased that this minority Government, under the astute leadership of the Taoiseach, on taking power, acted swiftly and decisively to put the national finances in order. When future generations study the history of the present period, there will be broad agreement that the Programme for National Recovery was one of the most important milestones in our economic history.

The previous Government were well aware of what needed to be done but because of the make-up of the Coalition partners — their ideologies being poles apart — unfortunately we went through a period of economic disaster and mismanagement. Some of the Oireachtas members of that minority partnership are continuing to advocate policies at local level that would bankrupt the most stable economies in the world. They continue to take the easy option at local level. They vote against local charges, having supported the legislation which gave county managers the authority to implement them. They supported the legislation at local level and in Dáil Éireann. At local level they orchestrate all sorts of pressure groups to highlight the actions of responsible councillors in implementing these charges. In some cases they have gone as far as imposing a party whip and expelling life-long members who served the party loyally for years.

I thought we were talking about expenditure.

We are talking about the raising of finances and this is very relevant. What annoys me is that having condemned the implementation of charges and the raising of necessary finance locally they then proceed to change horses, to take credit and to endeavour to dictate where this money should be spent, money which they did not want to collect in the first instance. They are fooling nobody. The man in the street today is well informed, is politically aware and recognises the need for planned economic recovery.

It is worth stressing that the programme for economic recovery has been agreed on by industry, agriculture, employers, the unions and the Government. It is a realistic and imaginative programme with exciting new ideas in the field of science and technology, industry, trade and marketing, horticulture, tourism, forestry and other fields. This is all carefully integrated with a programme of tax reform and a pruning of excessive Government spending. If the programme is considered objectively and dispassionately it will be found that every effort is being made to protect the weaker sections within our community.

The Minister for Social Welfare has guaranteed that social welfare payments will be maintained at least in line with inflation and this has happened in 1988. I am very happy that he has managed to increase payments to those on the lowest level of social welfare by as much as 11 per cent and I hope he will be able to further increase payments, particularly to the long term unemployed.

Deputy Woods should be complimented on doing an excellent job in the elimination of fraud. He has redirected this money to the people in real need. We all recognise that there is genuine poverty in our society but the long term way to deal with this is by eliminating the national debt. We have to find £2 billion each year just to service that debt, and that money could be used in job creation, because job creation, as we all recognise, is linked to the elimination of poverty in society.

Another category I would like the Minister to look at is that of deserted husbands. It is not a very large category, but when the wife leaves the family home where there are young children, the man is put in an impossible position. There should be some type of supplementary or special payment to deal with this matter.

On a more local level, unemployment in my constituency is a major problem and has been so for the past eight years. County Louth has been particularly susceptible to the recession, due mainly to the emphasis on the traditional industries of heavy engineering based around the old Great Northern Railway Company in Dundalk, two breweries, the shoe and leather industry in Drogheda and Dundalk and the failure of the textile industry in Ardee. All of these, unfortunately, are labour-intensive industries. In 1981 there was a total of 4,432 people on the live register which represented 14.3 per cent of the workforce. In 1987 the figure had increased; it had more than doubled to 9,112 people, a staggering 28.8 per cent of the workforce. As I said, the numbers of unemployed people increased by 100 per cent between 1981 and 1987. This compares very badly with the national figure of 17.8 per cent and the equivalent EC rate of 10.1 per cent. However, in 1988, thanks to the policies implemented by this Government and thereby the restoration of confidence in our economy, the position has been stabilised. In 1988 for the first time in ten years there has been a net growth of 300 manufacturing jobs in County Louth. We hope we have turned the corner in industrial development.

I would like to take this opportunity to thank the Minister for Finance, Deputy Albert Reynolds, that during his period as Minister for Industry and Commerce he recognised that County Louth was an area that needed special attention and he gave County Louth the status of maximum grant designation. This is very significant because it will give us a playing field level with our neighbouring counties and will help us in attracting badly needed new industry to this area. I would also like to thank Deputy Ray Burke because when he took office as Minister for Energy he acted swiftly and he gave the authorisation to extend the natural gas pipe line to Drogheda and Dundalk and the north-east region. This is a major infrastructural development which gives an alternative competitively priced source of energy to heavy industrial users in the north-east region. Many of these companies are at the cutting edge of Ireland's export drive and this provision played a major part in the 5 per cent economic growth achieved in 1987 when our exports increased by 14 per cent on the previous year to £10.7 billion, the first time the £10 billion barrier had been broken. This resulted in a welcome balance of trade surplus of some £1.5 billion. The momentum was maintained in 1988 with exports exceeding £12 billion and a trade surplus of £1.7 billion.

I would request that the new Minister for Industry and Commerce, Deputy Ray Burke, gives special attention to County Louth and in particular to my home town of Drogheda where we have 4,000 unemployed. In Drogheda there is a very fine advance factory which has been idle for the past five years. This factory was reserved for the Tartung Company of Taiwan and indeed, it was the most "announced" factory of all time. It was announced before the last two general elections that it would be occupied within weeks. Many people are depending on a new, high-tech industry being found for this factory. I requested that this exclusive reserve be removed, that the factory no longer be reserved for the Tartung Company, and that the IDA act quickly and urgently in seeking an alternative high-tech industry to occupy this valuable premises. It is ideally located. It is only 30 minutes from the airport, so I cannot over-emphasise the need for the Minister and the IDA to find an alternative industry, which would need to be an industry employing 500 or 600 people, for this premises. I have every confidence that the Minister and the IDA will find an industry because there is a scarcity of advance factories so close to the city of Dublin.

I am a little concerned about the policies the IDA are following. I say this because I am dealing with two small companies in Drogheda who are ready to provide and create 40 jobs in the manufacturing field and the IDA cannot support these companies because to do so would be to divert from their national policy. One of the companies are in computer peripherals and they found a niche in that market, and the other company are in the plastic industry. Because the IDA have grant-aided a number of very large factories to the tune of millions of pounds in the city and other areas — we must accept there is spare capacity within those companies — they will not and cannot support smaller companies in rural constituencies. This policy is too inflexible because they must take into consideration that there is an area where 28 per cent of the workforce are unemployed. I am asking the Minister to look at this and give it special consideration. Drogheda is also another area of possible job creation. The commercial life of the town revolves around the River Boyne and the port. I am pleased that the Minister for the Marine, together with the harbour commissioners in Drogheda and local port users, last year successfully put together a package, amounting to £4 million, for the reconstruction of the Welshman and Ballast Quay in the port of Drogheda. This is very important because the completion of the internal market in 1992 and as an island nation on the periphery of Europe our ports will play a major part in our development. I am also pleased that another port user has put together a multi-million pound package for inclusion in the national programme for EC structural funding. I am confident that the Minister for the Marine will include it in the national programme. The project will be sited at Roes Point further down the river and will create many jobs in that area.

I am very pleased to see the Minister of State, Deputy Treacy, here today because he travelled to Drogheda two years ago to visit the passage graves at Newgrange. That is an area of tremendous tourist potential. I should like to thank him for his part in designating that area as an archaeological park, the only one of its type in Europe. It is significant that last year 120,000 visited the passage graves at Newgrange, Knowth and Dowth. Those graves are 5,000 years old and pre-date the Egyptian Pyramids. They are a major tourist attraction.

Drogheda has a part to play in the development of the tourist industry. It has tremendous tourist potential. I have spoken to the Minister for the Environment on a number of occasions about the prospects of including Drogheda in the urban renewal programme. It is a medieval town with many historical monuments and ruins. I am very pleased that we got funding from the European Regional Fund this year — last year we got £400,000 — to continue the great work on the Millmount complex. That old converted barracks overlooking the town has been converted into a very attractive arts and crafts centre. It also includes one of the finest local history museums in the country. I know the Minister had a part to play in this work and I should like to thank him for his efforts to get us funding.

The tourist potential of that area is enormous. It should really be a second Kilkenny. It is very close to the city and an added attraction is the River Boyne where there is some of the most scenic landscape, not alone in Ireland but in Europe. I am a member of a committee in the midlands region who advise on the formation of a development programme. Drogheda has suggested a number of very important projects which are included in the five year development plan. One of those projects involves the River Boyne. We have suggested the expenditure of £25 million for an interceptor sewer, a sewage treatment plant and further sewage works at Baltray at the mouth of the river. At the moment all commercial and domestic effluent is discharged directly into the river and if we got the go-ahead for those necessary projects we could transform the River Boyne. Boyne salmon at one time was on the menu of all of the leading hotels in Europe and that could still be the case.

A person I was talking to the other night told me that on 12 July it was the tradition that the people visiting from Northern Ireland would throw money into the river as they crossed the viaduct. The young lads from Drogheda used to swim in the river at that point. He said it was possible to see the bottom of the river. Unfortunately, that has changed but with the installation of this very necessary sewage treatment works and the interceptor sewer, this could again be the case. We also have on the River Boyne, the Boyne Canal which runs by Newgrange, Knowth and Dowth and that could be another means of access to the passage graves.

My aim is to try to develop Drogheda as a tourist area. The Boyne Valley Tourist Development Association are doing wonderful work in this area. Medieval Drogheda, another organisation, were very active for many years and made a major contribution. The Programme for National Recovery has set an objective to increase tourism revenue by £500 million through a doubling of visitor numbers over a five-year period and the creation of 2,500 new jobs. Given the necessary support, Drogheda will make a major contribution to this.

I should like to refer briefly to the need for new housing in our town. St. Laurence's Park has been planned now for nearly five years and before the last general election the council were assured that if we reduced the scheme from 50 to 30 houses we would get the immediate go-ahead. Unfortunately, that did not happen. We are two years down the road and we still have not got the go-ahead. We had a meeting nine months ago with the NBA and we were told that when one included the infrastructural development works on the approach roads to this new scheme, the unit cost of the houses amounted to £39,500.

We accept that it is not feasible to proceed with that scheme due to the serious financial constraints under which the Government are trying to operate. The NBA have come back with a new design for 50 houses and an alternative access point which, basically, eliminates a lot of infrastructural development work and the earlier planned approach roads. They have got the unit cost down to an acceptable level of £26,500 and I should like to ask the Minister for the Environment to take a close look at it and give us an early approval for those very necessary houses. In the life time of the local council the redevelopment of Scarlet Street has been on the engineering list meeting after meeting. I should like to ask the Minister to take a close look at that scheme and give us early approval of it.

We all appreciate that we need a more equitable taxation system. We need to reduce VAT and PRSI. I hope the Minister will see his way to harmonising the taxation system to bring it more into line with our European counterparts. I know that we are not yet out of the woods but the economic situation has improved and the national debt has stabilised.

Another area that might be worth looking at is allowing tax relief on home improvements. This would help to eliminate cowboy operators and it would stop people signing on the dole and doing nixers at the same time. People would insist on getting a registered contractor to carry out home improvement work and would insist on getting a receipt for work done. This would also create employment in the construction industry.

I compliment the former Minister for Finance on his handling of the tax amnesty. For years successive Governments have been called on to collect outstanding tax but it was Ray MacSharry who very cleverly engineered the collection of outstanding tax. People in business were visited frequently by the sheriffs and then later on the tax amnesty was introduced. I do not know whether that was a planned action.

Contrary to what many people say, people who paid the £500 million in tax were already in the tax net. The emphasis should now shift to the people who have not paid up. When the sheriffs were active last year they spent a lot of time visiting legitimate companies who were in arrears with tax but who were bona fide operators. The Revenue Commissioners should now investigate all of the companies who did not bring their taxes up to date. I doubt whether remaining taxes can be collected but such an effort would give the bona fide operator a level field on which to play. There is no doubt that fly-by-night operators are still operating without paying tax.

During the past year a lot of new legislation was introduced. I refer particularly to the new companies legislation which is very important. I hope the Dáil will pass it without delay. It will help to eliminate the fly by night operators among other things.

I compliment the Government on restoring confidence in our economy. In relation to local radio I urge the Minister to issue licences without delay because whether we like it or not local radio has become part of our life. Drogheda has become one of the largest towns in the country and I suggest that the Minister give special consideration to giving a local licence there.

I congratulate our armed forces on their contribution to the winning of the Nobel Peace Prize by the United Nations for peace work in troubled countries in the Middle East, Afghanistan and other areas. The Army are a very important group in our country. I hope the Minister will see his way in the budget to implementing the 12 per cent increase recently recommended for their pay. People recognise the need for the increase in that area. I compliment the Minister on recognising that Army pay needed to be reviewed and I compliment him for putting in place a special committee to review the pay structure. It is worth nothing that the last committee of this type was established in 1979 by Deputy Ray MacSharry. I hope there will be a satisfactory outcome to this problem.

The job has been only half done but it can be completed if the Government stay on course and follow the policies they have enunciated.

Senator Mulroy spoke eloquently and at length in complimenting various Ministers and the Government for arresting the problem with our national finances, for dealing with unemployment and for ensuring that the necessary infrastructure is put in place to develop the country. The Senator then went on to outline the remarkable deficiencies in his own home town of Drogheda and said that these problems have been there for a long time. Obviously his Ministers have done nothing to arrest the decline in Drogheda.

I did not say that.

I know the Senator did not say that but I have to infer it from the remarks he made. The Senator seemed to be extremely disappointed that no new housing was provided in St. Lawrence's Park in the last two years, that no inroads had been made into unemployment so that 4,000 people in the area remain unemployed and that factory space is still idle after two years. I can understand that Senator Mulroy has a difficulty in bringing home that reality to this House. The many social and economic problems that still exist in our country should not be underestimated and they will not be underestimated if the Government stay on the course they are on now. Looking back at the history of our economic and social development and particularly at our finances one sees a huge build up in the national debt over the last ten to 12 years. The question we must ask ourselves is whether we got value for money. Whether the escalation of our national debt to such alarming proportions was necessary or whether something could have been done much sooner to render unnecessary the sacrifices that most people are making in our society today. In my opinion, and in the opinion of most fair-minded people the proportion of national debt need not have been as it transpired. It need not have developed to the alarming level that it has had the measures taken by the previous Government, particularly since 1981, been supported by all political parties.

I want to say how sorry I am that every effort made to reduce public expenditure was frustrated and opposed by the present Government, then in Opposition, at every opportunity. The fact that we have now established a consensus on the need for something radical to be done with the national finances illustrates the level of maturity reached in Irish politics today. That action is being taken. It was a necessary course of action to reduce public expenditure rather than to increase taxation.

As everybody knows, the country is punch drunk with high taxation and the direction in the personal taxation area must be downward. The only way that that can be achieved is by reducing services and expenditure thereby affording to the Government leeway to reduce personal taxation and restore the incentive to work. Certainly I am glad the leader of the Opposition today shows much more responsibility in the national interest than did his predecessors in encouraging a greater level of economic activity, greater order to our national finances and greater stability in our economic development.

We must ask ourselves the question: how far advanced economically would we be today had we taken that remedial action, supported unanimously, five or six years ago? The pain being experienced by people in the health sector, in education and in local government would not have been necessary today had corrective measures been sustained over the long period and had the short, sharp shock that was then essential received its rightful support at that time.

Undoubtedly our greatest national problem today is unemployment. Thousands of our young people leave the country, most of them seeking their first job. Others who already have jobs here decide to emigrate on account of our penal taxation system, seeking opportunities in other countries that will not penalise them to the same extent. Undoubtedly these young people are a terrible loss to our country. We invested millions of pounds in their education only to see the fruit of that investment being used and harvested in other countries. These young people should be the wealth creators of our nation and its future development. Unfortunately, most of them will be lost to us for good, breaking up the family life that we cherish so much as part of our society. Many of our unemployed young people find themselves at the bottom of the pile through no fault of their own. They feel let down by our political system. They feel disillusioned with Irish politics. They tend to be cynical about politicians and political institutions in general. That is a very dangerous development here and is something we must arrest without delay. Young people feel that their right to work is passing them by and that they are forced to turn to support from the State.

We must take concrete, realistic action to combat these evils as soon as possible. That is why the Fine Gael Party outlined in a document published in May 1988, the New Politics document, a set of proposals considered necessary to deal with the economic crisis before it becomes a lost cause. It comes down to tackling the root cause of the problem of unemployment, namely our unjust tax and social welfare systems. In their present forms they are serious obstacles to job and wealth creation and the achievement of a just society in which everybody is entitled to a basic level of income whether at work or not.

The fatal reform of our taxation system can be done by unifying our tax and social welfare systems and substituting a personal basic income system. Such a system could be in operation within five years of its approval by the Dáil and would achieve a number of objectives and benefits. For example, for the employed it could eliminate poverty traps, engendering an economic climate in which effort would be clearly rewarded rather than penalised. For the unemployed it would bring about the removal of any social stigma attached to that condition of dependance on the State. For the taxpayer it would mean the elimination of obstacles to the expansion of employment. For the employer and the State it would bring about simplicity of administration which would have advantages not only for the machinery of the State but for employers also. Such a system could create a positive mood, rebuilding a spirit of enterprise, affording a way of dealing with some of the most widely perceived problems administering our tax and social welfare systems today.

How often do we hear of employers, whether large or small, speak about the enormous bureaucracy and red tape they encounter when recruiting people for the workplace? If we are serious about creating employment, about creating an atmosphere and incentive congenial to employers to recruit employees then nothing should stand in their way in the nature of bureaucracy. Nothing should stand in their way to the creation of employment. It is ironic that one of the main obstacles often featured in publications and spoken about by employers as acting as a disincentive to recruitment of staff is the high level of PRSI being charged for every additional employee. I regret to say that the Government seem hell-bent on increasing that rate of PRSI for each additional employee in the forthcoming budget which appears to be signalled in the 1989 Estimates. Rather should it be eliminated altogether, thus acting as a greater incentive to recruitment of staff.

I would ask the Minister to take another look at the level of PRSI in the context of the 1989 budget. I know that the Minister for Finance who was recently appointed to that Department, coming there from the Department of Industry and Commerce, will know at first hand the difficulties employers encounter in relation to this problem. If as a nation we are serious in ensuring that the least possible impediments are put in the way of employers recruiting more staff, we should rethink that strategy of tending to impose more rather than less taxation on employers.

Undoubtedly the first step towards creating any incentive to work is the lowering of personal tax rates. The Fine Gael Party have thought long and hard about that matter. They realised there would be difficulties in implementing any radical move in the direction of having two bands of taxation, namely lowering our rates of taxation to something equivalent to those in the United Kingdom.

There is a downside as well as a beneficial side to all of this radical reform. An all-party approach is the most enlightened and imaginative way, indeed the only approach that will ensure a restoration of the incentive to work. The difficult decisions need to be taken in an all-party context so that the losers will not gang-up with the Opposition parties of the day, or with other parties, in order to frustrate any attempt to bring about the necessary reform. That has been the practice for far too long in this country. A new approach, to bring about a greater consensus on the measures needed is essential if we are serious about taking action in the national interest to reduce taxation and increase employment.

In the Ireland of today a two tier society is emerging. It is alarming to find that a recent survey carried out on behalf of the Combat Poverty Agency by the Economic and Social Research Institute found that one third of the people of this country are living in poverty. We must acknowledge that poverty affects some people more than others. Some households headed by an unemployed person, families with a large number of children and small farming households are in a poverty trap. We can garner the most beautiful statistics to show that the national finances are improving, economic indicators are heading in the right direction, but if in sharing those resources we do not protect the less well off in our community, we will widen the gap between the rich and poor and create divisions in Irish society, and the results will become apparent in the years ahead. I ask the Minister, in the context of economic strategy, to prevent such divisions taking place in Irish society and to bring about greater equality so that the less well off are protected against the winds of economic difficulty and the difficulties arising out of unemployment.

I firmly believe that the best way of taking people out of the poverty trap is to unify the tax and social welfare systems and to create conditions that will bring about employment. That is one urgent task facing the Minister for Finance and he is conscious of this. Everybody in politics must also be conscious of it. Many people will be watching to see what direction the Government will take in the budget to narrow the gap in Irish society, as against widening it which has been the case over the last couple of years.

The success of the tax amnesty raises fundamental questions about the efficiency and effectiveness of our tax administration system. Why did the Department of Finance grossly underestimate the amount of tax that could be yielded from such a scheme? It was estimated in the 1988 budget that £30 million could be raised from such an amnesty but something in the region of £500 million was raised. This illustrates just how out of touch the Department of Finance can be as regards the scale of the problems we are experiencing with our tax system and the efficiency of that system. The tax collection system effectively had broken down and the amount collected through the amnesty is ample evidence of this. The Revenue Commissioners have been lulled into a sense of complacency so far as tax collection is concerned because they are legally protected. For example, the Revenue Commissioners preferential status in the event of a company going into liquidation ensures that tax arrears continue to accumulate for that company. The Revenue Commissioners know they will get their money at the end of the day; they know that money will come into the Exchequer and as a result they can adopt a very complacent attitude in relation to going after that money much earlier.

In my opinion, the Minister for Finance should remove the preferential status of the Revenue Commissioners in company law. He could do this by introducing an amendment to the Companies Bill going through the Dáil at present. This would place an onus on the Revenue Commissioners to bring about greater efficiency of tax collection and ensure that the accumulation of arrears, as has happened in disgraceful fashion in recent years, will not be allowed in the future. The Revenue Commissioners do not require such protection. They have sufficient powers at present — the power of attachment, the rigorous powers given to sheriffs to collect this money etc. — without any protection in law. Companies should confront their financial problems much sooner and the Exchequer would be much better off by having money paid much earlier.

The number of jobs to be created under the Programme for National Recovery and the achievements to date of the targets set out in that programme are illusory. The Minister for Industry and Commerce, judging from a statement he made at the end of 1988, must be completely out of touch with reality if he thinks that a substantial number of jobs were created in 1988. He made no mention whatsoever of the number of redundancies and job losses in 1988. The IDA are doing a very effective job and doing their best to promote Ireland as a location for new industrial projects but their efforts are being whittled away by inefficiencies at management level and in the workplace as a result of various unofficial activities that, unfortunately, create difficulties in trying to maintain employment. The present economic climate does not lend itself to maintaining employment rather there seems to be more incentives for the company to collapse and pass over their responsibilities to the State and their creditors rather than to keep going. The reconstruction element proposed in the Companies Bill to bring about the greater stability of a company and which will rid us of the cowboy operators who seek to close a firm on one day and set up another company next day under another name, will be eliminated as soon as possible after the Companies Bill is enacted.

The delays encountered in getting this Bill through the Dáil are regrettable because of the work done in the Seanad on the Bill over a year and a half should have meant the Companies Bill, 1987, would be on the Statute Book at this stage. The impetus generated following its publication has not been maintained. It is essential that we remove from the scene those who deliberately collapse companies and encourage legitimate operators to continue under the auspices of the legal protection they deserve.

Fianna Fáil in their election manifesto of 1987 referred to the possibility of 100,000 new jobs being created in a matter of four or five years. Various references were made in the manifesto to the enormous potential of the horticultural industry. We have heard very little recently about An Bord Glas. I do not know if they exist at the moment but the expectations in regard to that organisation in 1987 have not been realised. They are taking a very low-key approach to the importation of vegetables. It is a scandal that there are people on that board who represent the multiples and are encouraging the importation of particular vegetables. I hope the Minister will ensure that his targets are met but even if they are not, that a greater effort will be made to replace imported vegetables with Irish produce in supermarkets as quickly as possible.

Tourism has also been referred to. The Government have taken some steps, announced in a blaze of publicity, over the last year and a half to encourage more people to come to this country. I have no doubt that there has been an increase in the number of people who have come here during the past couple of years. The work Peter Sutherland, the former Irish EC Commissioner, carried out in relation to airline competition has helped in this regard. The development of a new airline service in opposition to the national airline service also helped because it brought more competition into the airline business. This has meant that Aer Lingus, our national airline, are now prepared to operate services to corners of the country, for example, Galway, Sligo and Knock, which they did not consider were essential or possible to provide a few years ago. Because of the increased competition from other airlines it is now possible for them to provide these services. They now have to compete in the real world and if they do not provide those services they know that others will displace that share of the market to the detriment of the national airline. The lowering of fares, the greater penetration of our market place and the availability of a greater number of flights throughout Ireland has meant a huge increase in the amount of traffic operating on our airline services.

During the last year the major development which took place in Kilkenny was the proposed selling off of Kilkenny Design Workshops by the former Minister for Industry and Commerce, Deputy Albert Reynolds. I am delighted that the matter has now been resolved to the satisfaction of the community interests in Kilkenny in so far as Kilkenny Civic Trust has been established, the Minister has vested the property in the name of the Kilkenny Civic Trust and a board has been established so that the day to day operations of this valuable property, which is of cultural importance to the city of Kilkenny, will be maintained, operated and organised by the people of Kilkenny for their benefit. Trustees and boards of management have been established under the auspices of the local authorities and various people can use this Butler property, as it has become known. If the property had gone out of State control into private hands it would have been one of the greatest mistakes that could have been made on the part of the Minister's Department, the Office of Public Works and the Heritage Council of Ireland. I am delighted that the matter has been resolved to the satisfaction of all concerned. This means that not only will tourist interests and the value of that crown jewel in the city of Kilkenny be maintained for the benefit of the people of the area but it will be further developed by the smooth passage of that property into the hands of the Kilkenny Civic Trust. I hope that Regional Funds will become available in order to enhance that property and to make it even more sustainable in the future.

In relation to tourism, I am conscious of the fact that we must sell our product as best we can if we want to get the benefit of any commercial demand for it. This means that success is dependent on products being available which will attract consumers and which will sell in competitive markets. Tourism is a voluntary activity and no shortage of choice is available at the moment with over 70 destinations on offer. Our existing tourist product is for the most part based on exploiting our natural components of scenery, culture and people and the relatively relaxed pace of life in this country. This will continue to be the main product offered but it will now have to take its place among a range of other products. With the development of the Structural Funds and the submission of the national plan for the doubling of the Structural Funds, we will have a unique opportunity to ensure that tourism will make its rightful contribution to the economic and social development of the regions. I am disappointed that we have not heard more in recent times about the contribution tourism can make to the development of this country but I look forward to the publication as soon as possible of a plan for each region and, in particular the south-east, so that we will know what attempts are being made to exploit the financial resource we will have available to us and which was not available to us up to now.

I note that the South-East Regional Tourism Organisation published a regional tourism development plan some time ago. This plan impinged very little on the importance of tourism for Kilkenny. The South-East Regional Tourism Organisation should look again at new initiatives that could be taken in order to cater for the domestic holiday market and not just for foreign visitors. A very good example of how domestic tourism has been exploited to the full is the Trabolgan development in County Cork. The success of that development in east Cork shows that there is a need in some other regions of this country — and I suggest the south-east region — for a low cost family holiday centre which caters for outdoor pursuits and activity holidays for the Irish holidaymaker who does not go out of the country because of the expense involved. I hope the Government will consider through private investment or otherwise, the necessity of improving the domestic and family holiday market in the context of the very ambitious tourism targets they have set for the next couple of years.

I wish to turn now to the development of the Structural Funds and to what will be the enormous impact of the doubling of those funds by 1992. A very large sum of money will be made available by the EC to help develop the Irish economy in the period 1989-92. The total could come to approximately £3 billion or the equivalent of £3,300 for each household in Ireland. This investment is being provided by the taxpayers of other European countries. The EC has recognised the peripheral location of this country in addition to other countries in the Mediterranean region. The other European countries which will make this contribution will be looking for results. It is a one-off investment designed over a five year period to bring Ireland to a level playing field where it can compete effectively in the single market. Funding on this scale is not committed beyond the next five year period and European taxpayers will certainly not continue to make such an investment unless they see real results in terms of economic development and extra employment. For Ireland this is probably the last opportunity we will get this century to remedy a long period of decline vis-á-vis other European countries. This relative decline can be illustrated by expressing the income per head of other countries as a percentage of Ireland's in the period 1913-85. During that period Norway moved from an income level of 85 per cent of Ireland's in 1913 to 206 per cent today; France moved from 105 per cent to 172 per cent and Austria moved from 103 per cent to 160 per cent.

We can no longer use the excuse of British "colonialism" for this poor performance, an excuse we have been far too readily able to trot out in the past. Ireland was independent for the greater part of the period 1913-85. Fine Gael believe that divisive, destructive and inconsistent politics in this country have contributed to our relatively poor economic performance. Political energies that should have been devoted to longer-term economic development were often frittered away for short-term political gain. Now that the politics of electioneering funds and borrowing for electioneering are hopefully gone for evermore we can get down to the real business of nation building.

The Government will probably waste the opportunity offered by the proffered European investment unless they take immediate and radical action and go off the course they seem hellbent on following at the moment. The Government appear set to use EC money to fund a superficially attractive list of individual projects rather than a coherent integrated programme. The prospects of the Government party in the 1989 European elections will be a major focus and EC money could be used in a manner similar to the way the national lottery was being used, until the brakes were put on recently, as a slush fund for naked political gain in various parts of the country. Such political gain should not impinge on the choices that have to be made in an integrated regional development programme in the various parts of the country.

Hard choices should be taken and should not be avoided and rigorous priorities in relation to an integrated programme should be set. To take the politics out of the 1992 debate and the spending of this money in the context of the doubling of the Structural Funds, a solution akin to the Labour Party solution to the national lottery in recent times, an all party consensus in order to set the headline and set the priorities for the spending of this money would be important. Perhaps through the National Economic and Social Council, in addition to the leaders of the political parties, a framework could be established so that money would not be divided among various regions for political advantage.

Fine Gael think that the most important issue is to cut the cost of access for people, goods and ideas to and from Ireland into the European marketplace and to promote active and tough competition within the Irish economy so as to bring our costs down. We still have very high costs for transport, communications and insurance. This is preventing a lot of Irish companies from competing on a level playing field with our European partners. The development in Irish Distillers is an example of how European multi-nationals can see their way to gobbling up most, if not all, of our important Irish companies to the detriment of the Irish economy. The repatriation of profits, particularly to the US, could be part of a European situation if we are not careful in the years ahead. It behoves all Irish companies and the Irish economy itself to become efficient and competitive if we are to survive the type of attack and competition that we have to face in the years ahead. The central thrust of our policy must be one of promoting technological innovation. A recent OECD study on innovation policy in Ireland concluded that:

a policy for promoting technological innovation conducted with determination is needed to set the country on a new path of development. Central to this policy is the formulation of a clear vision for the country as a whole.

I agree with this conclusion. Unless national resources and talents are mobilised for the achievement of a vision of the future for Ireland, our potential will remain unrealised. The OECD concluded that this vision should include ambitious targets in relation to employment and the vision would be to the year 2000 whereby an increase in the labour force in Ireland by 100,000 and the doubling of Ireland's share of the world market for industrial products would bring about the necessary increase in living standards and increasing employment and activity that would eventually lead us out of the poverty trap in which so many people in this country find themselves, and rid us of the emigration haemorrhage that is taking so many of our young people from this country.

Ireland's programme for 1992 has to comply with new rules for the European Social Funds and for the Agricultural Guidance Fund. The Commission proposes that these funds will in future operate under much more precise guidelines for national authorities and beneficiaries which will be laid down by the Commission. They will be co-ordinated with one another so as to achieve an integrated development across the entire economy of the regions to be assisted. In order to ensure that the Community and the regions are integrated this should be taken out of party politics. Then priorities and decisions can be made that relate to the integrated development nature of these programmes rather than by way of naked political advantage.

I regret to say that the system by which the Government established committees, working groups and advisory groups under the sub-regional programmes is nothing short of a consultative sham. I cannot understand why it took so long for the Government, after the announcement was made in May, 1988, to get the working groups and advisory groups mobilised to consult with the interested parties in each region. On 2 December, 1988 the first meeting of the advisory group of the south east region took place, almost seven months after the announcement that the structure should be put in place. They have now — six weeks later — completed their task of consultation without having any reference whatsoever to what the working group is doing under that structure in order to develop and devise a plan for the south east region. There has been no co-ordination or cohesion and no consultation between the groups and it has been nothing short of a waste of time for many of the groups involved. Local authorities, who are people who go before the people and represent communities, and the minutest community interest, had no input with the exception of a tokenism in the form of chairperson or a mayor being put on a working group just for the sake of ensuring that a local authority was represented in that token way.

I fail to see why each local authority could not have discussed over a period of six months the plans that they would have liked to see forming part of their sub-regional programme and why they could not have had the power to set up a consultancy approach to each region in the same way as £300,000 was spent devising an integrated plan for Dublin. We would have seen much more radical initiatives being proposed in the context of the working groups and the plans submitted at the end of the day to form the national plan for each region. What we have is a few meetings here, a few meetings there, and this is consultation in the eyes of the Government. It is nothing short of ensuring that the mandarins in the Department of Finance continue to keep a stronghold on whatever national plan is submitted to Europe at the end of March so that the control will effectively remain at national level without any input in relation to the decisions and priorities for any region being taken by the regions themselves. Local autonomy and local democracy has certainly reached a new low under this Government because of its addition to the abolition of so many committees, including agricultural and health committees and the regional development organisations that were so essential and had such an important contribution to make into the development of these plans. A year afterwards they had set up again token working groups and advisory groups in order to give an impression to the general public that enormous consultation was taking place in order to bring about greater integrated plans for each region.

The Hume report referred to the need for a strengthening of the role of existing local authorities based on a rational allocation of functions between levels of Government. Fine Gael acknowledge the need for a re-distribution of powers from central to local government together with a radical overhaul of the local government structures. I cannot understand that the Government cannot recognise that there is the possibility of a genuinely dynamic and truly representative system of local government available if local government have responsibility for raising a significant proportion of their own resources. I know that this raises difficult issues of tax policy but there is no point in shirking the responsibilities that we all must have if we are serious about keeping a system of local government in operation in this country. Examinations have been promised and have been going on for so long now that I think the Minister for the Environment cannot see his way out of the problem. I submit to you, a Leas-Chathaoirligh, that he might have been recently taken over by the smog issue to such an extent that he cannot see clearly the need for any radical reform in relation to local government, outside the Ballyfermot area that he speaks about so frequently. Each local authority could have a significant contribution to make in ensuring that the infrastructural developments that are so essential in each county were brought about. This could have been done if the opportunity of consultation had been given to them under the regional programmes and under the doubling of the structural funds.

I often wonder if Kilkenny is the forgotten place in relation to the south-east region. In two reports I have read recently — the Regional Tourism Organisation report and the South-East Region Pilot Technology Programme Interim Plan, published in July 1988, — not one reference is made to Kilkenny as a location for any initiative that might be taken in the context of those programmes. I regret that the Minister with responsibility for science and technology, a Minister from the south-east region, has failed to recognise the importance of spreading proposals under Eolas funding across the region rather than concentrating on the regional technical colleges in Carlow and Waterford, which he seems intent on doing.

Various proposals, such as up-grading Waterford Regional College to the status of an NIHE have been made in the context of the regional development plan for that region. It is important that the best possible technological education is available for the students within the region but nevertheless I fail to see why a place such as Kilkenny should not have an important role in the development of international education, language education, cultural education and summer schools. That quasi-university role would fit into the very historic and academic culture which permeates the area.

Kilkenny tourism, under the guidance of Pat Nolan, has pioneered the genealogy and heritage activities in Kilkenny city and surrounding areas. The Minister, Deputy McCarthy, has proposed that if a science and technology centre is to be set up, Cashel would be the beneficiary of such a centre in the south-east region. I am not saying that his parochialism got the better of him on that occasion, and the fact that he comes from Cashel probably had nothing to do with the preferred location of this centre. I hasten to say that I would not dream of accusing him of that, but my naked political observation would indicate that he might have had some measure of preference in this regard, particularly as he is Minister with responsibility for science and technology.

I hope the recognition Kilkenny has failed to get in the south-east region under the various submissions that have been made up to now will be arrested under the national plan that will be presented to Europe and that all areas in the region, not only Carlow, South Tipperary, Wexford and Waterford, will be looked after in the best possible way. Kilkenny should get its share of the action too.

Cuts in expenditure in the health area have gone too far. I meet people daily who are concerned about further cutbacks in the health service in the south-east region. There is tremendous stress on people who have been hospitalised and are sent home too quickly after an operation and there is less community care now than heretofore. Old people in particular are very worried because if they get sick who will look after them since they have nowhere to go? The development of homes for the elderly has not advanced to such a stage that it can absorb the present demand. We should ensure that people are kept in the community rather than institutionalised.

The VHI debacle and the losses they have made are a clear indication that the service is over-loaded with private patients at present. The consultants are ripping off the system to the extent that they are bringing the VHI into disrepute. I hope the two-tiered system which this Government have encouraged, and seem intent on continuing will ensure that the VHI recovery programme will not impinge on the people who were not responsible for the losses incurred. It is the people at the top of the scale in the high-tech clinics of Blackrock and the Mater Private Hospital, who should be made to pay for any recovery plan. The poor have suffered enough and have been put under tremendous stress because of the health cuts. The precribed relative allowance is not applied liberally enough to ensure that people are looked after by their relations and friends in their homes when they cannot be looked after in hospital.

The country is at a cross roads. Improvements have been made in the economy. The discipline that has been exerted over a number of years began in 1981. If the people are to get the benefit of these improvements, we must ensure that more employment is generated. The creation of employment is being restricted by red tape and bureaucracy. The reality is that one-third of the country is poor, many people are unemployed and many, especially those under 25, have emigrated. People are disillusioned with the economic performance of the country, in spite of the glorified statistics we get from time to time from the Government Information Service. The reality is that major economic and social problems still exist and no amount of double think by the Government will hide that fact. I hope they recognise that there are people who are continuously being marginalised each day Government strategy continues along the road it is taking at present.

We are coming towards the end of the debate on the Appropriation Act, 1988, and contributors from both sides of the House have dealt with practically all the areas that are relevant to the debate — poverty, unemployment, emigration, the tax base, health, local authorities, agriculture, the Army, foreign affairs and all other economic areas within the ambit of Government expenditure. It is practically impossible for new statements to be made by anybody from any side of the House. It is extraordinary that we are debating this matter when the money has been spent and in the shadow of the forthcoming budget. We would all like to think that this debate will influence that budget in some way. As I said this morning all our pre-budget submissions will be considered when preparing this budget.

Members of this House in particular, depending on what political view they hold, have either complimented the Government on their performance or have condemned them on the consequences of their actions. The tone of all the contributions reflect the unreality of the total figures we are discussing today. The outturn for 1987 was £11,764 million. At the end of 1988 the figures were estimated to be £11,465 million. These figures are based on the Economic Review and Outlook 1988 which was published by the Government in 1988 in which it is stated that:

The prospects for economic growth in 1988 in the industrialised countries are now more favourable than had been forecast earlier. The major external imbalances have narrowed substantially in volume terms, with some adjustment becoming visible in nominal terms. The October stock market crisis does not appear to have had lasting effects on business confidence.

The CII, in their documentation, which represents a view of economic trends published in October 1988, said that manufacturing output was up by 13.4 per cent, that all the books remain at their highest levels, that capacity utilisation was 70 per cent up to August. They mentioned that unemployment on a seasonally adjusted basis had dropped to 240,900. They talked about retail sales being up 0.8 per cent in volume. All these figures are from one sector of the community who deal with and represent the privileged few in this country. On the other side of the spectrum there is front page documentation from such bodies as the Catholic Social Service Conference, the voice for the poor, who say that the crisis of poverty and living costs put strains on families; that welfare families are forced to turn to money-lenders; that poverty has become a way of life, that a bishop claims that the poor are worse off now despite the boom; that bigger profits do not yield more jobs and the poor cannot wait. Those are the two sides of the economic spectrum, the CII and the Government on one side representing the boom and the bloom, and on the other side the people dealing with the actual crisis on the ground, people who now have the courage to make submissions in public representing the Catholic Social Service Conference, the Major Conference of Religious Superiors, the Combat Poverty Agency and Focus Point. In between all these figures there is a real problem and all of us must try to address it. We address it by considering what happened over the past 12 months following last year's budget and last year's economic rectitude and to coming up with a budget this year in line with what we are led to believe, that the figures allow a little room for manoeuvre.

I should like to put on record that the Labour Party, since this Government came into office, have opposed and voted against all these Estimates on every occasion. Likewise, we have already voted against the Estimates for 1989. We have not done that for the sake of opposition. As speakers from our party in this House and in the other House have pointed out, these Estimates, particularly those dealing with social responsibility, are inadequate to relieve the levels of poverty which have now been identified by responsible bodies like the Conference of Major Religious Superiors, Combat Poverty, Focus Point and other independent groups. They have all identified the poverty population at over one million people. I quote the figures of the ESRI, who have found that almost 30 per cent of all households nationally are living on less than 60 per cent of the average household disposable income; in other words, less than £48 per week per adult. Of course, these figures have been questioned. They were questioned this morning by somebody who would be considered to be a leading economist from Trinity. I will deal with him in a few moments and his views are to the right of even the right in this country. His argument was adequately and dismissively dealt with by the Conference of Religious Superiors. All these figures, whether right, close to being right, or even half right, are figures that no one in this country, whether in Government, in Opposition, in state agencies, in churches or associated with any bodies who deal with people can ignore or be proud of. No amount of economic upturn, lowering of the inflation rates or reductions in borrowings, or payment of outstanding taxes during amnesties, or the cutting of public services, can be honestly praised or pointed to by any speaker from any side of this House while this evil of poverty still prevails.

Economists and many Government Ministers have said repeatedly that all these factors must be in place before the poor can be helped. Why is it that the poor must always wait? Why is it, in spite of commitments given to the social partners in the Programme for National Recovery, that levels of social welfare are not maintained? Why were the rules and regulations enabling people to qualify for social welfare changed? Why were the social partners not told that keeping them in line with index-linked cost increases was socially acceptable? Why were they not told that these rules and regulations would be dramatically changed? They have been changed in some cases to such an extent that it is impossible for genuine cases to be approved for the receipt of entitlements.

I specifically identify the area of disability benefit where in last year's budget the number of contributions one needed to qualify was increased by 50 per cent; so much for the Programme for National Recovery in satisfying the social partners about the underprivileged section who do not have an income and who are dependent on the State to sustain them. This increase in contributions by 50 per cent has resulted in claims for disability benefit being refused in spite of the fact that applicants who are medically certified and proven to be entitled to benefit are now forced to sign on the unemployment register and to declare an untruth. They are forced to declare that they are available and able to work, which is not true; otherwise, they receive nothing from the State.

When we talk about fraud and the misuse of social welfare in other areas, we should also look at the genuine cases of people who are entitled, on medical grounds, to certain payments but are excluded because the rules were changed halfway through the game. In the coming budget will we cater for that sector and for the long-term unemployed? Will we cater for single women who gave up their working life to look after their widowed or disabled parents, who never had a chance to build up a contribution record and are not old enough to be considered for the non-contributory old age pension? These people are in receipt of the paltry single woman's allowance. They are having the greatest difficulty in proving their eligibility for payments. The child benefit scheme has also been decimated by this Government. In the coming budget these areas must be addressed by the Minister for Finance.

The Labour Party in their pre-budget statement, and this was covered by my colleagues Senators Jack Harte and Brian O'Shea, have suggested minimum payments of £60 per week for a single adult and £96 per week for a married couple. These figures are not unrealistic and are in line with suggestions from many outside sources, including the Government Commission on Social Welfare. Admittedly, the Labour Party were instrumental in setting up this commission. We felt that we should have an independent view of the use or abuse of social welfare and its importance to some sectors in our community. The commission came forward a year and a half ago with their recommended figures which are in line with those contained in the Labour Party pre-budget submission. These figures are also reflected in other pre-budget submissions from concerned organisations.

The Minister for Finance and his colleague, the Minister for Social Welfare, should ensure that families who are eligible for and who should be in receipt of family income supplement will receive these payments. This could easily be achieved as the information is already available in the taxation system and the income supplement is only applicable to people at work who are on small incomes and who have large families. The necessary information is on P60s and tax free allowance certificate forms. It is readily available between the Departments of Social Welfare and Finance. I suggest there is a radical problem with the scheme because, as has been admitted by the Minister in response to questions in the other House, some 80 per cent of eligible families are debarred from receiving this payment either because they did not apply for it or for some other technical reason.

One might ask whether, if a family received this payment, they would lose their eligibility for a medical card. Some 80 per cent of large families on low income, are not in a position to qualify for the family income supplement, funds for which were set aside by the Oireachtas for the purpose of alleviating the hardships caused by the high cost of living. This is not the first time we have mentioned that scheme to the present Minister. We suggested that he conduct an information campaign and that the employers could be used as a catalyst in the meantime. This scheme, which was designed to deal with the removal of food subsidies and which could be directed specifically at larger families on low incomes, has not been availed of to the extent that it should be and only approximately 22 per cent of known eligible families get their allowances.

The underlying current of public debate at present is the whole question of poverty. This is an embarrassment to any Government in office, because everybody would like to believe, given these tremendous figures of increased output and increased exports that there should be no poverty at all. However, presuming there is a level of poverty within some of the areas mentioned, one of the contributing factors to this problem is the lack of work. This Government must stand indicted on their performance in tackling this problem.

The new Minister for Industry and Commerce tells the nation on radio and television and in all the other media available to him that he has exceeded his targets on job creation. He mentioned that 20,000 jobs were created. The IDA more or less confirmed that figure. There are many sceptics throughout the country asking where in the name of God are these new jobs or if they are jobs that have been promised by the IDA to come on stream in two or four years time. Let us suppose that the jobs are there, although we have not seen many of them — I have not seen any of them in my area, but I have seen the opposite — none of the agencies nor indeed the Minister has used the same media to say that unfortunately we have lost more jobs than we have created and that redundancies have actually exceeded job creation. That is why the Labour Party have published a Private Members' Bill specifically addressing the problem of redundancies. The Government are not tackling the problem of unemployment. We are losing established jobs. In my own town of Tipperary on Tuesday last a wholly owned subsidiary of a soft drinks company shed 40 jobs because of technological progress. An industry in Dublin will benefit because they had the plant to take up the slack. Technologically they have sufficient production space available in Dublin and do not need 40 workers in Tipperary. This should act as a forewarner for what might happen in 1992 when we remove barriers and have equal access to trade. Unless this Government can ensure the protection of particular patents and franchises which have been dearly won for this country by the entrepreneurs in the past, by people who went out and brought these franchises to this country as in the case in County Tipperary where the family had a franchise for 40 years, those franchises can be taken away by people who hold similar franchises in another EC country which through technological progress has excess capacity. This could wipe out all the factories which manufacture similar products in this country. These are the challenges that face us in 1992. We would want to get off our bicycles and get into our motor cars or aeroplanes and tease out these problems at the European Commission.

You should get back on your bicycle.

Bicycles are out of fashion. When you are trying to compete with the Eurocrats, there is no point in getting up on a bicycle, you would get wet at Dún Laoghaire.

You would have to be fit.

I am saying publicly that we must protect the franchise holders. The franchise company in Tipperary manufactured 1 million cases of the product per annum but the same franchise company in a factory in Wakefield produce 60 million cases with half the workforce because of increased technology. There is little regard for Tipperary town and the £0.5 million this factory generates for the local economy. That is the sort of problem we are facing. There is no joy for those workers when they hear the Minister say that 20,000 jobs have been created. I am asking him and his agency, the IDA, to address the problems of franchise and patents and ensure that companies faced with these economic dilemmas are assisted by way of grants and otherwise. If they were Japanese or other foreign nationals they would be welcome and we would pay them £20,000 a job to start here. That is the kind of procedure that has left us with a jobless workforce, and I emphasise, a jobless workforce, to echo the sentiments of Senator Mooney this morning, people who would love to work if they had the opportunity, would love to get off unemployment assistance, benefit, dole, supplementary welfare and so on. They would dearly love to do so for a reasonable wage, and we still have 230,000 or 18 per cent of our workforce available for work and unable to get jobs.

Add that 230,000 to the 36,000 young people, educated to the highest extent possible by all of us contributing in our own way towards that, who emigrated last year and the year before and then start to look at what is left out of our total population of 3.5 million. We have about a million more in a dependent category whether they are old age pensioners or dependent children. Now who is left to benefit in this boom and bloom that the CII, the Minister and all the other economic forecasters talk about? Are they among the increased number the statistics suggest are attending the race meetings with the increased amount of money for betting? Are they in the increased number of new cars registered last year? Are they the increasing number of people who play the stock market to move money around, who employ nobody but make money? Are they in the major power game of the take-over bids in the agricultural and co-operative movements, the people in the jet set, the Sail Ireland Club, the people who want the sun to shine at all times of the year and who if it does not shine here can go elsewhere for it? If these are the people who are left to enjoy the benefits there is very little future for this country when you consider all the people I have talked about who are underprivileged, unemployed, sick, poor, dependants and emigrants.

The gap is widening and some day, unless some Government address this problem, there will be a revolution because people will not stand for this widening of the gap between the smaller numbers of "haves" and the "have nots". I am not saying this in any sense of begrudgery——

Yes, Senator Ferris, I thought you would see some little bright spot.

Nobody should begrudge or covet what anybody has, but all those privileged groups must realise that they, too, have a moral and social obligation to ease the burden of the less well-off. The Catholic Church, the bishops and I say they have a moral and social obligation to ease the burden on the less well off. I say, too, that the Government must be a catalyst for this redistribution. It is the only way it can be done because the concept of socialism in that group of people does not exist. To them it is a kind of dirty word.

The Government have a major social responsibility, irrespective of whom they are elected by, to the whole nation whether working class people, business people or otherwise. The Government must broaden the tax base and achieve greater tax equity in doing so. In achieving tax equity and a broadening of the base they will, of course, ease and reduce the tax burden on the one sector, the PAYE sector who have always carried more than their fair share of the burden to date. If any of the privileged sections of our community I have talked about doubt the morality of their obligations I suggest they read the submission from the Catholic Social Service Conference. On page 5 of that document on taxation reform the CSSC say:

A clear distinction exists between the concept of tax reform and that of tax relief. Tax relief involves reducing the overall tax burden whereas tax reform refers to a restructuring of that burden by means of an extension of the tax base and a redistribution of tax liability.

In case anybody thinks I am just preaching socialism, let me quote from the same document an unpopular figure given by Pope John Paul II inside the front cover of the book, and I agree with him:

Without going into an analysis of figures and statistics, it is sufficient to face squarely the reality of an innumerable multitude of people — children, adults and the elderly — in other words, real and unique human persons, who are suffering under the intolerable burden of poverty. There are many families who are deprived of hope, due to the fact that, in many parts of the world, their situation has noticeably worsened.

Now let me quote from inside the front cover the words of Archbishop Desmond Connell:

A truly Christian society must give priority to the poor in an allocation of its resources. Therefore, cuts in spending should be chosen by Government in a manner which will protect those who are most economically vulnerable in society.

I am not saying anything different. I have just gone a little further; I have identified a section who have to make what is for them a sacrifice; for other people it is justice.

Unfortunately, unemployment is the major contributing factor to poverty, and this Government have aggravated unemployment figures by offering their major "voluntary" redundancy packages. That is why the Labour Party, this morning, decided that at least we would have a public debate on whether it is ethical for anybody to be allowed to buy out a job which could be somebody else's right in the future, or to offer vast lump sums to key people in the private sector and the public sector, sums ranging from £10,000, £20,000 to £30,000 and continuing pension payments of up to £200 a week for early retirement. These competent, qualified people could use their skills for the betterment of this society, particularly in the public service. This Government have offered to buy them out on a voluntary basis on terms which at times cannot be refused. In the private sector in particular the State are asked to take up 60 and 70 per cent of the tab for compensation on redundancy. Therefore, we need to address the problem. Whereas it may sound lovely for those who benefit, they are closing off an option in the future for some child coming out of school to have a job, because by the very act of buying out the job they are closing off that option for somebody. In the public service, in particular in health, education or local authorities, that practice affects the welfare of the section of the community I have identified as being in need.

Any cutback in those services affects the needy more than any other section of the community. The privileged, who may need those services, can avail of them because they are in a position to pay for them. Subscribers to the VHI can claim a tax concession on their annual premium and avail of all the facilities offered by the private hospitals. In the meantime the State is expected to pay for the initial cost of the provision of those services. Some people misunderstand the position in that they are under the impression that those private clinics do not cost the taxpayer any money. We hear suggestions that private patients accommodated in private wards of public hospitals do not cost the taxpayer any money. What is forgotten is that the taxpayer had to pay for the building of those hospitals and that the consultants, as public servants, are paid between £40,000 and £50,000 per year. The consultants, in addition, are in a position to earn considerable amounts of money from the VHI by caring for private patients and they expect to be given the use of all the hospital facilities such as X-rays and nursing care which are paid for out of the public purse. That problem must be addressed and we cannot dismiss it by saying that some people can afford to pay.

The position in regard to education was ably outlined by Senator O'Shea but it is no harm to repeat that many of us are concerned about what is happening in that sector. Local authorities were mentioned when I interjected in the contribution of Senator Mulroy who was making a political point. In that event I felt it was appropriate to make a political response. Senator Mulroy referred to local authority funding, service charges, the minority Government, the parliamentary party and so on. I should like to put the record straight in regard to local charges because it is important that the public should be made aware of the facts. With a view to restructuring local authorities and their finances legislation, described at the time as a temporary measure, was introduced permitting urban local authorities to charge for services, like county councils. Those charges were to overcome the discrepancies that arose as a result of the decision of a Fianna Fáil Government to abolish rates on private property but we were always told that they would be a temporary measure. However, the promised restructuring and refinancing of local authorities has not taken place and the charges remain.

The Government, and most of their parliamentary party Members, promised during the course of the last election campaign that they would abolish those charges. I accept that Senator Mulroy was not a member of the parliamentary party prior to the last election but it is important that he should be reminded of that promise. Since the election Fianna Fáil representatives in Tipperary have refused to support estimates that include provision for service charges.

The Senator would not find that in County Clare.

That may be so but I have been told of what is happening in County Louth. I suggest to Senator Mulroy that he get information of what is taking place in other counties. It depends on the county, how responsible the representatives are and their views on the services local authorities should provide. It is time the Government addressed the problem of financing local authorities. If they do not it will not be long before some of them will go out of existence.

I cannot believe what is happening to the health services throughout the country. Health boards have been going from crisis to crisis since the Government took office as a result of a drastic cut in their financial allocations. I am in a position to give information about the state of the finances of the South Eastern Health Board. They have a £6 million deficit and have had to close hospitals in Tipperary town and elsewhere. Fianna Fáil representatives do not appear to have any problem about closing hospitals and they say that the Minister has had to adopt this policy in the interests of economic rectitude. We have been told that previous administrations spent too much money on the health services although Fianna Fáil Members, when the party were in Opposition, complained that not sufficient funds were given to them. It is ironic that they are the people who are now voting to close hospitals and curtail services.

I will not bore the House by outlining the differences in opinion that can exist in parliamentary parties of all descriptions. This year the South Eastern Health Board have been told that in addition to all the closures, the savings, cutbacks, job losses and ward closures, the board have been directed by the Government to sack more employees in order to achieve further savings. The board have been told not to save in the non-pay area but to achieve savings in the pay area and the only way that can be done is by sacking employees. The board are being forced to put nurses and other staff in the health services out of work. I have seen a copy of that directive from the Minister to health boards. The intention is to centralise the kitchens and laundries. Money will be spent on the purchase of new equipment that will prepare frozen food products, in spite of all the scares. Cooks, wards maids and laundry workers are to be sacked and that will lead to a deterioration in the services to patients. We are heading for a disaster. Any good hospital needs an efficiently run kitchen and laundry to cater for the needs of patients. How will that be done if the food is pre-cooked or frozen foods are used? The quantity may be the same but the service to the patient will be different. The changes are being made in order to get the hidden numbers right. The plan is to sack as many people as possible so that the Minister can achieve his targets. We will be left with a two-tier health service.

Fortunately, some members of health boards have the courage to oppose the cutbacks. If we do not stop them we will not be able to provide adequate health services in the future. It is the responsibility of local representatives to call a halt because the only response one gets from the Government is that the vast majority of people agree with their approach.

Third level education is now out of the reach of many young people. There must be a change in attitude by the Government in regard to that sector. If that does not take place third level education will become the preserve of the dynasties, the children of solicitors, doctors and chemists. Eventually they will be conferring degrees on one another, like titles, because there will be so few competing for places. Many of those who attain the required number of entry points to go to university cannot avail of the offers of places because their parents cannot afford the fees and the cost of accommodation. The son or daughter of a lorry driver who works for a co-op will not qualify for a grant because the father's earnings put him over the income limit. We are in a tough position and the facts had better be made known.

There is also an instruction that closed hospital wards will not be reopened. Every day there are debates about centralising hospitals, building sector hospitals, rationalisation, amalgamation and so on. The health boards are trying to make that sort of decision although they cannot even reopen the wards that have been closed. There are longer waiting lists among medical card holders. Up to 300 people are now waiting for operations in the county surgical hospital in Cashel. This hospital never had that sort of waiting list. Wards there have been closed and the CEO has said those wards cannot be reopened. The CEO has reassured Deputies that he will not close any more beds. If we close any more beds do we admit that we cannot give a hospital service? These cuts must stop. It has been proved and admitted by the Minister following investigations that people have died but still the cutbacks have not been stemmed.

Unfortunately, opinion polls reflect an endorsement of this régime. In our headlong rush for fiscal rectitude the weak and the poor are being swept aside. Somebody has to speak for these people. The Labour Party have been trying to do it with some little success in recent times. People are now seriously considering us as being the only effective Opposition in the Houses. We are being honest and we are opposing the Government not just for the sake of opposition. We told the Government we would support them on certain issues and suggested compromise in areas where we felt it would be inappropriate to defeat the Government. We have been realistic in what we have been doing. We have been holding our heads as high as possible in this wave of fiscal rectitude. The Labour Party, with the support of the trade unions, say that it is now time to listen to the many genuinely concerned people who have made submissions in all the sensitive social areas. The Government and those who support them will have to answer the accusations and answer for their actions some day.

In case there is a misconception that poverty exists only in the urban areas, I would reassure the major population in the greater Dublin area that poverty also exists in rural Ireland. There are small isolated family farms which will never have basic amenities like bathrooms, running water or roadways. The inability of local authorities to respond to these basic needs is patently obvious to members of local authorities. We have been trying to use some of the money generated from the sale of local authority houses to at least provide basic facilities for old people who cannot help themselves. There are no grants from the Government to help people in these areas. The local authorities have now grudgingly decided to put some money into infrastructural development in isolated rural areas.

Successive Governments have neglected local authorities whose members have been disregarded. The local authorities will not forget the lack of proper funding from Government. I have been present when deputations met the Minister and all the deputations told the Minister what he should do. The Minister is a marvellous man, a credit to Bunny Carr. The Minister projects this magnificence of having an answer to everything, without really responding to the problem. The Minister has given so many promises about Government and local reform and funding and has referred to all sorts of reports in his Department but, if he does not do something soon to address the problem in local authorities he will be remembered as the man who made all the promises but did nothing. Some of the others did not make promises and did some little thing, but nobody has really addressed the problem.

In relation to rural Ireland, I absolutely condemn the Minister for Agriculture and Food for not advancing any case for the reclassification of disadvantaged areas or for the inclusion of additional areas. The Minister, Deputy O'Kennedy, before he was elected to Government publicly and vociferously promised that he would do all these things for the disadvantaged areas. If the Minister did what he promised, enhanced EC funding would be made available to small farmers enabling them to retain their family farms and ensure the survival of rural Ireland.

For the past two years I have been trying to ascertain from the Minister if he has applied to the EC and if he could let me have a list of the areas submitted for inclusion in the disadvantaged areas schemes. I have asked the Minister to tell me the Government's attitude to additional funding in the budget so that we can use any indulgences we might have with the large socialist group and other people in the EC who have visited rural Ireland and have agreed on the need but are just waiting on the Government to make a submission. I have been unable to get this information from the Minister. I had to go directly to members of the European Parliament and the Commission to find out if the Government have applied for an extension of the disadvantaged areas or for a reclassification of the existing ones.

Existing funds could be made available to areas in rural Ireland where there is poverty. Money is already earmarked and available in Europe if the Government made a commitment of additionality. That puts the debate about the extra £3 billion in Structural Funds into its proper context. I congratulate the Minister, Deputy Máire Geoghegan-Quinn, for her excellent job in explaining to people what she was trying to do. Perhaps we will have to wait until next week to see exactly what submission was made by the team to the European Community.

No matter which side of the House one belongs to it is appropriate to advocate that it be within the power of Ministers to give some indication of the kind of funding that might be available or expected particularly for Structural Funds that would warrant Government capital funding in a budget. One must have some knowledge of the amount of topping up or additionality required of a Government in order to benefit fully from the European funds. I have no qualms whatsoever with any Government trying to do that. However, I do have reservations about the way — as was outlined by Senator Hogan — they prepare themselves for the submission of this major national plan at the end of March. I have no problems about trying to establish whether if we put something into our budget, the EC would match that provision. What I am saying is that, for the disadvantaged areas, we know the money is there. We know they will respond to such investment. We know that if the criteria are met in these areas about which I speak funds are currently available within Europe to the Minister for Agriculture and Food and the Government if only they had the will to apply for them. They must not have the will to do so even though before assuming office the Minister promised he would do so.

I had expected that benefits would have accrued to rural Ireland last October, which was the effective date mentioned had the submission been made at the time the Minister promised. If that submission is not made people will leave rural Ireland. I am talking about real rural Ireland and you, a Chathaoirligh, will know that better than most. You put your foot outside the Pale; you know what it is about; you know what it is like in Glencush, in the Galtee Mountains, Slieve na mBán, Gleann Isteach and Hollyfort. You know that the salt of the earth live there. They are just surviving there and they will not remain there indefinitely unless there is assistance from Government and from Europe to compensate them for the kind of life they must live. If we were instrumental in having them brought down to the villages and the towns which some planners would like then we must ask ourselves: what would we do with them? They are quite happy up there if they had a reasonable standard of living, a reasonable livelihood. There are no 40-hour a week jobs for some of those fellows. They are prepared to work night and day to try to survive and are happy. We should not take away their happiness but at least we should attribute some credit to them for what they have been doing. There are already structures within the Community by which such could be done.

I must refer to the procedure that has pertained at regional level regarding these funds. We had the nucleus of an administrative structure already in place for approximately 20 years established by a previous Fianna Fáil Minister in the regional development organisations which were comprised of planners, engineers, managers, harbour boards, representatives of Coras Iompair Éireann, all the agricultural experts. They had all the professionals but they were comprised also of elected local authority representatives who were responsible on the butter box outside the chapel gates for what they said or did. Those people guided them. The people who are being paid to make decisions have to be guided by people who never get paid who are the targets of much criticism, who receive no compensation and no payment but, by God, their advice is always good because it is impartial. Unfortunately a couple of months before the announcement of this regional plan that structure was abolished because it contained too many public representatives. It was not that there was anything wrong with them but rather that they would have too much information on the Government of the day. They would know too much about the procedures being put in place and their requirements. The Department of Finance want to keep as much of that information as possible within their little bailiwick.

I say that to the Minister of State, Deputy Noel Treacy, who is present in the House, in the knowledge that he has made a major contribution in that Department by way of blowing away some of the cobwebs and getting some action on the ground, fair dues to him. Of its very nature it is a Department that want to control everything else. That is why they wanted as little input as possible into the formulation of this plan. Therefore they established these other excuses for regional committees under the name of the chairperson of the local council. All that was returned to us seemed to be an amalgamation of the schemes of all Governments, past and present and accepted from local authorities but who had neither the guts nor the money to implement them. They merely added them all together. I hope they do not put that amalgamation of schemes on an aeroplane bound for Europe, by way of submission, because we would be laughed out of court. We will have to produce facts and figures about infrastructure, the integrated funds available and we will have to ensure a pay-off at the end. Ireland will have to be a better place as a result. This is not just a scheme on submission to save Government spending. This scheme's aim is to improve the whole concept of regional infrastructural development supplying roads and facilities for industry, tourism and all the other innovations we hope will take place.

That is the challenge for the Government. Unless they make facilities available to people to lodge such submissions, through local elected representatives and outside organisations, such as Muintir na Tíre and others they will have lost an enormous opportunity. They may well be told by the Commission to go back home and tidy up their act because they might not have it right. Such funds are intended for the regions. They are not intended as supplements for national Government, for budgets or anything else.

I have no problem about the Government wanting to have some idea of where developments are taking place and what will be their spin-off benefits. It is important that Government would be so informed but they must realise that the European concept of 1992 will be different from what everybody thinks. It was frightening to listen to the comments of people interviewed in Dublin about their knowledge of such Structural Funds. They did not know. The Minister, Ministers of State and everybody else have a major problem on their hands in communicating to the ordinary people that there is a problem about these Structural Funds.

We are worried about people in rural Ireland. Senator Mooney said he was very worried about them. He is a communicator who uses the existing communications media; probably he will use the new ones also. He can communicate with rural Ireland. He said rightly that, coming from Leitrim, he is worried about the small farmer. I would remind him, and indeed the Minister for Agriculture and Food that 6,000 to 8,000 representatives of those small farmers gathered in the town of Thurles the other day. They had a message, which was that they want to give money to the Government. They want to know in advance if they can without there being any repercussions what that contribution is likely to be. That is somewhat the same as the rates that the IFA in their wisdom got abolished, to their grief now. They would like to be still paying because they did not pay 99 per cent of those rates.

The same people are now seeking to opt for the land tax which we supported because we felt it would assist the Government to get some revenue. It would also assist the Government in trying to convince farmers that they would not be penalised for being efficient. It would also be an incentive to make optimum usage of land. There are already sufficient problems about that aspect from the European Community in particular. It would appear that they do not want farmers to produce anything more as far as I can ascertain. Some £30 million or so is spent on the middle administrative people to shuffle papers around; in the opinion of the ordinary small farmers in rural Ireland that money should go to Government. The small farmers always had the name of wanting to pay their fair share but were never given an option of doing so. There are sensible people in farming organisations who have made a very valid case for such a change or option. The Minister for Finance should realise that there is a problem of discontent in this area: I am aware of that discontent of first hand and I would be afraid that it might get out of hand and become another crusade, leading to further discontent at the end.

In the debate on the Appropriation Act it is possible to deal with a wide spectrum of public spending and activities and we would like to feel that the Minister will take some account of the points made in the context of next week's budget. I feel I cannot conclude without referring to the level of dissatisfaction within the Defence Forces. Senator Mooney congratulated them on the award given to the UN peacekeeping forces and said they had a magnificent year. I waited for him to refer to the real problem facing them, one we should treat with some sensitivity in this House as each one of us, as democratically elected politicians, depend on the loyalty and support of the Defence Forces. I ask the Minister to recognise the urgency and importance of this matter in next week's budget. No section of the community would begrudge them anything they receive because each of us would agree that they hold not only a very special place in this country, which is a neutral country, but among the nations of the world.

It is unfair that their spouses had to publicly plead their case, both on radio and television and in the national newspapers, on a daily basis. The Minister before Christmas announced a complicated settlement which, on further analysis, was an insult to the Defence Forces. This matter should be addressed and there is all-party agreement that it should be addressed.

During this debate statistics have been produced to show that everything is great and that production is up. On the other hand, there is poverty, high unemployment; we have to consider the sick and the undedrprivileged. The Government have a social responsibility to respond to the needs that have obviously been highlighted by responsible people outside of the political structure. All I will say is that it is a problem we need to address.

As we come to the end of this debate on the Appropriation Act I would like to make passing references to some of the subjects that have already been dealt with in very great detail. During the Christmas recess the Government published the Exchequer returns for 1988. The Department of Finance estimated that the amounts the Government needed to borrow in the absence of the receipts from the tax amnesty and the once-off receipts from the new collection procedures totalled about 6 per cent of gross national product. While final figures are not yet available, the Department of Finance estimated that the overall national debt — this might come as a surprise to most people in view of the severe cutbacks in public expenditure during the past year — rose from £23,700 million to £24,500 million by the end of 1988. I think the Taoiseach actually made a reference to this yesterday. The debt will remain very high at 130 per cent of gross national product, but if we can stabilise at that figure there is a prospect that growth would gradually reduce the debt to a more acceptable level of gross national product.

There is a price to be paid for fiscal success and this has been outlined in great detail. Fiscal success has been brought about by having 230,000 people unemployed, one million people living in poverty, forcing 40,000 to emigrate, a two-tier health system, lack of equal opportunity in the educational system, declining levels of social welfare and declining levels of service in the public service. Never before have I received so many submissions from reputable organisations concerning poverty in our society. If the Government continue with present policies, and there are no reasons why they should, the result will be social division, the likes of which will have never been seen before.

In passing from the problem of poverty, I think that tackling unemployment is the greatest challenge facing the Government. Unemployment leads to poverty, which can only be eliminated through an increase in employment. The additional resources available to the Government should be used to launch a vigorous programme of job creation in 1989 and for paying special increases in social welfare, especially for the long-term unemployed. This very subject has been dealt with in great detail, and having listened to Senator Ferris I could not improve on what he said today.

I would like to refer briefly to regionalisation and regional funding. Recently I read that we have no local government in Ireland, that rather we have local administration. When one examines that statement one will have to accept that it is true. Local government powers have been continually eroded, regionalisation has been largely abandoned and Ireland has become one of the most centralised countries. The case for courageous and comprehensive reform of the administrative structures in the interests of democracy, community enhancement and social and economic development is now more compelling than ever before. With such reforms regions and regionalisation must play an important part. Irish Governments correctly and forcefully argued the case at European level for regional policy and regional aid for areas on the European periphery. The same arguments can equally be applied in respect of regional issues within Ireland. Successful regional and national strategies are increasingly being based upon the promotion of local and regional diversity and on the diversity of different cultures.

Many European countries have a long history of decentralisation and regional government. Centres, such as Spain, Italy, France and Denmark, have embarked upon this process in more recent times with great success. Senator Hogan also referred to this matter in his speech today. Indeed, in a debate before Christmas in this House I pointed out that Denmark had over 1,300 local authorities. Ireland is one of the very few states where administrative centralisation rather than decentralisation is a dominant factor and I believe this is not in the best interests of the country. Regionalism is an important issue within the European Community and it is an increasing potent force throughout most of Europe. For Ireland and other Community countries it can be used in strengthening administrative structures. Even more important, meaningful regional development needs to be viewed as a key element for economic recovery.

This leads me on to the question of regional funding. The EC have spelt out the new framework regulations for the operation of the Structural Funds. The new regulations provide for a significant departure from previous procedures governing the approach to European Community funding for regional development. Previously member states simply clawed back the EC funding into their national Exchequer coffers. Most of the projects had already been budgeted for and their cost was simply recouped from the European Regional Development Fund and through other financial instruments of the EC.

Such centralisation of administrative and bureaucratic power in determining which projects were to be funded by the EC and how the money was to be clawed back in the case of Ireland by the Department of Finance breached the principle of additionality. This principle means that development projects were intended to be in addition to those already budgeted for in the regional programme for member states. In the past the allocation of available financial resources of the EC by ignoring local initiatives also had the effect of stifling indigenous development in the regions and local communities. Like all excessive centralised and bureaucratic systems it brought its own results of inefficiency and eventually failure. Ireland has suffered from this in the past but we must ask ourselves if we have learned a lesson from it.

We all know that there is going to be a doubling of the Structural Funds and the way we are planning for it gives the impression that we are in danger of not maximising the results we could get. The whole process of the preparation and presentation of the integrated programmes within the EC has been clouded in secrecy. I make this case because the Department of Finance who are in control of the process have chosen deliberately to exclude public participation in the preparation of these programmes at local level. It is my view that the Department are ensuring that there will be no extra public expenditure and they are dampening down specific programmes and refusing to allow others to surface in some of the draft programmes being prepared at present. There is, of course, no participation at local authority level. In some cases the advisory groups are supposed to meet with their working parties but seemingly they only meet on a very nominal basis.

One of the best debates in Dublin City Council took place at our last meeting. The city manager's representative on the working party admitted that neither he nor the members of the working party were sure of what items would eventually go into the plan. On radio yesterday the Minister of State at the Department of the Taoiseach, Deputy Geoghegan-Quinn informed listeners that the city and county managers or their representatives were reporting back on a regular basis to their local councils, informing the local representatives of what progress had been made and asking for their views on what they would like to see in the plan. I should like to tell the Minister that this is not the procedure at present. My city council had one meeting to decide on what we would like to see in the plan but we have had no further consultation on the matter. I cannot understand the secrecy involved. Although the new Community regulations require local involvement and consultation, there is a growing concern that the plans being prepared for the seven designated regions, including the Dublin region, will not be published in draft form prior to the plan being submitted to Brussels and that no details and informed public debate will take place on the substance of the plans or on the priorities identified by them. For such a debate to take place it is essential that the Government publish these plans for the seven designated areas in draft form for public discussion and comment.

With regard to the greater Dublin area I call on the Government to clarify whether the consultants have completed their report. If the report has not been completed it should be published without delay so that a detailed and informed public debate on its contents can take place before the plan for the greater Dublin area is finalised and forwarded to Brussels. It is not acceptable that the conclusions of the consultancy study paid for out of public funding, concerned with the future development of the greater Dublin area and identifying within it development priorities, should be kept secret from elected members, the people of Dublin and the different community groups and organisations, both voluntary and statutory, who are daily involved in tackling many of the economic and social problems the integrated programme for the Dublin region should be designed to confront and resolve. I ask the Government to publish this plan as soon as possible.

As Fine Gael spokesman on the Environment, I must say that the Minister for the Environment is presiding over a massive reduction in local authority housing. Last year 1,600 houses were completed in the country but not one new start was made in Dublin city or county. The Government have made the laughable suggestion that the construction industry is a special concern of theirs but they have an extraordinary way of showing that. It is one of the greatest myths that Fianna Fáil are the friends of the builders because they have not sanctioned one local authority house in an areas with the highest concentration of population, namely Dublin city and county. I do not understand how the Government propose to deal with an emergency housing problem in the city area. By maintaining a complete embargo on local authority housing they are doing very serious damage to the building industry. If there is an economic recovery in this country — and we all hope there will be — this will mean that many of the young people who have emigrated will want to come back here. I saw this happen before during the late fifties and early sixties when the economic recovery caused a housing crisis and I can see that happening once more. We have not learned from the mistakes we made in the past. But there is one difference between the sixties and the present day. At least in the sixties we had the land to build extra houses but now the policy being adopted by my local authority, which is controlled by the Fianna Fáil Party, when they cannot get sanction from the Department of the Environment to build houses is to sell the land, which means that the premier sites in Dublin are now being sold off.

What is going to happen when these premier sites are gone? It will be impossible to start a housing programme. This seems strange because last year both Houses of the Oireachtas passed the Housing Act, 1988, and the concerns of that Act were to house the homeless, the handicapped and the elderly. Because of emigration there are houses available to house the homeless but unfortunately because we are not building new houses we cannot accommodate the handicapped because houses for them have to be specially adapted and this must be done during the building process. One of my greatest regrets is that we cannot now house the elderly. The population is growing older and there is a need in that area for extra accommodation. I said it before, and I will keep repeating it until someone wakes up to the situation, that we have in Dublin and other cities a number of senior citizens who are on the housing list with no possibility of being housed due to the policies of the Government. On a radio programme recently, the Minister for the Environment said that he had solved the pollution problem in our rivers and lakes and that in the same way he would solve the smog problem. We can only wait for the summer months to see how effective the Minister has been in solving the pollution problem on our rivers and lakes. If we still have the same pollution problems and fish kills that we had last year then the Minister should do the decent thing and resign.

We have come to the stage where there is some improvement in our public finances. Senator Mulroy concluded his speech by complimenting the Government on what they had achieved. It is only fair to say that the effort to get public expenditure under control was commenced in November, December of 1982 by the previous Government. When that Government were elected to office the proportion of gross national product and the budget deficit were so high that the economic future of this country was in great peril. That Government strove very hard during their four years in office to come to terms with our public expenditure and our foreign borrowing especially our budget deficit. They substantially reduced the budget deficit during the four and a half years in spite of high interest rates, a strong pound and a strong dollar and in the teeth of an Opposition who were totally opposed to the policies of that Government, policies that were laid down to serve the interests and economic future of this country.

Senator Hogan was not there to see it — he mentioned this in his speech too today — but I was in the other House during that time when every pressure group was exacted in this House by Fianna Fáil who were then in Opposition and who were at the throat of the Government seeking increases they knew the Exchequer could not pay. The same applied to the re-examination of semi-State bodies to make them more accountable to the Exchequer for the substantial funding they were receiving. Again, the Opposition of the day opposed that tooth and nail. I remember in my own constituency when the first hospital in Dublin was closed all hell broke loose among a Fianna Fáil group. Unfortunately they were very irresponsible in Opposition. Their success today in dealing with the financial situation that faces this country is due to the fact that the Opposition of today who were responsible in Government are also responsible in Opposition. It is my intention to stay responsible in Opposition and to see that our finances are put in order and so create more wealth and, through that wealth, more employment to solve the problems that face this country.

This has been a pretty long and wide-ranging debate. It is not my intention to delay the House or the Minister who has been extremely attentive and patient today and yesterday. Much of what I had intended saying in this debate has been said and I do not intend to go over a lot of the ground which has already been covered by many other Senators.

I am particularly concerned about one area that is affected by the massive cutbacks which are being put into operation by the Government. There have been many calls about the elderly, the sick and how they are affected by these massive cutbacks, but I believe that too little attention is being given to the young. In recent days we have seen many of the poor becoming poorer. That area has been well covered here in this debate over the past few days and indeed earlier today. I am particularly concerned about how it affects our young people. For myself and others, probably in the autumn of our lives at best, we have experienced hardship in our youth and have had the build up to it over the years which will enable us to withstand a little hardship.

What is to be deplored is the terrible effect that these cutbacks are having on the young people of this country. In my conversation with them I find them disillusioned and wondering where this entire effort is leading. In my younger days we did not have the same educational facilities as we have today and it has been a long hard struggle to build up to what I would say is one of the best educational systems in Europe. It is a great pity to see this being interfered with. We heard many programmes on television recently and in the media generally, where there was praise in Great Britain, if not publicly at least privately, among employers for many of the young people emigrating to that country and taking up employment in the cities and towns there. On one programme, the "Late Late Show", a little over a week ago — it was indicated that many employers on the other side of the Irish Sea were anxious to have Irish labour over there, not least because of their educational achievements.

I would like Government to bear in mind that if we cannot hold our young people at home, though I hope every effort will be made to hold as many as possible, at least we will equip them for positions abroad. We owe it to them. They are our children and they will do this country proud the better they are educated here. I find particularly in many post-primary schools today, that teaching hours are being cut back. Many schools in my area have taken an extra half day off teaching hours and some of them are closing at 3.20 p.m. on Fridays instead of 4 o'clock. The size of classes has increased and, indeed, there is the anomaly that the community and VEC schools have a five year cycle as against a six year cycle for the fee paying schools. This means that pupils in the community and vocational schools are competing on an unequal basis and have to do the same exams as those in schools with a six year cycle. They are immediately put at a disadvantage. The vocational schools and the community schools are catering for the children of the disadvantaged. I would hope that the Government in the forthcoming budget, will arrest this growing problem in our educational system.

I have come across cases in recent times — I know this has been pretty well dealt with by other speakers — where students who are not well off, despite having obtained the necessary points for third level education, were unable to take up those places. Senator Ferris warned earlier this afternoon that this could happen but I can tell him it has already happened. I know of at least three such pupils. The reason for this is the financial restrictions and the lack of adequate grant-aid. That is to be regretted. It gives an advantage to the children of the better off citizens who can pay for third level education. Over the years we have tried to bring about a situation where all pupils could avail of third level education on an equal basis but I am afraid we are now beginning to slip back from that position and it is the disadvantaged who are suffering.

About four or five years ago the Department of Education, to give one example, gave the go-ahead for the building of six sports halls in the country, but money was never provided for that project. In that list of the six areas, the area of the greatest disadvantage is not too far from where I live, Killinarden in west Tallaght. When this Government took office the rules were changed and the sanction of the halls was scrapped. It was proposed that money would be made available from the national lottery, provided there was adequate input from local finances. Four areas were named: Bray, Clifden, Portmarnock and, again Killinarden. I do not have to spell out to the Minister the area of greatest need in those four. The requirement is that the area provide £60,000, £70,000 or £80,000 of local finances in order to qualify for a lottery grant to build a sports hall. It now looks as if Bray can manage to provide the local finances; I do not know about Clifden — I did not have time to check the position there — and Portmarnock easily got the local finances and therefore qualified for the lottery money. Killinarden has about as much chance as a snowball in hell of obtaining £70,000 or £80,000 from the local community to qualify for the lottery grant. That is probably one of the most disadvantaged areas in the country. Because the Government changed the rules with regard to the building of the halls, they ensured that Killinarden would never get a sports hall and that is the position today.

Portmarnock hall has been built. It is adjacent to one of the greatest leisure facilities in this country. I ask the Minister where is the justice in this or who is suffering greatest from the changing of these rules and the cutbacks? I know Portmarnock has a very energetic Minister with a very strong voice at the Cabinet table but I do not think that should influence the matter. More luck to Portmarnock if they get a second hall but Killinarden, along with many other disadvantaged areas in County Dublin, is crying out for this facility which it can never hope to obtain under present rules. There is not a hope of accumulating £10,000, never mind £80,000, in an area where there is 70 or 80 per cent unemployment. I would appeal to the Government, in next week's budget, to make funds available through the Department of Education for this project. As long as that stipulation is there for the building of these halls the areas of greatest disadvantage will never have them, while the better off areas which can provide the moneys will qualify for the substantial grant from the lottery funds.

The former Minister for Education, Deputy Gemma Hussey, introduced what I considered, as indeed I think did many Members of this and the other House and many people interested in the education of those in the disadvantaged areas, to be one of the best and most successful schemes that was ever introduced for early school leavers. That was the vocational preparation and training programme. Under that programme a grant of £300 was given to each child, which was payable over 10 months — £30 per month. I would have to say it was easily the most successful scheme that was ever introduced in the area that I am most familiar with, the area of County Dublin, for people in the newly built-up areas who had large families and who were disadvantaged, many of them not continuing their education to leaving certificate standard. Unfortunately, when this Government came to power they again changed the scheme and replaced it with a FÁS scheme called Youthreach. Certainly that means more money for the students. A sum of £20 is payable to each student up to 17 years of age and £25 up to the age of 18 when they qualify for unemployment. It is a great pity that the scheme introduced by former Minister, Deputy Hussey, was interfered with because in areas such as Blanchardstown, Clondalkin, and particularly Tallaght, with which I am more familiar, and, the city of Dublin it was working beyond all expectations. Many students, having done the group certificate, who would otherwise have either left school and roamed the streets or would have emigrated with little preparation, availed of the vocational preparation and training programme. That programme was increasing in momentum. Then this new scheme — the Youthreach Programme — was introduced on 1 January. I have a record of some students who have left the vocational preparation and training programme because of no money being provided for them this year. The scheme was still there but they were not being paid, putting them at a disadvantage.

I have a record of students who have left that scheme and as I said, who have applied and have been accepted by FÁS, despite the fact that FÁS tell me they will not take students out of school. I do not know whether the students misled FÁS but it is a pity that in one school 12 students left since 1 January.

Normally there is a little wastage at this time of year and some students do not continue under the scheme but there have been many more drop outs on this occasion. I cannot say if they have gone to FÁS though I can say it about two students I know. I would hope that this situation will be watched and that we will not allow the vocational preparation and training programme to disappear from the post-primary schools, particularly in the areas to which I have referred.

One school has already notified me of a drop of 18, last year there was a drop of seven. Another school told me today they had a drop of 12, last year it was two. Those are the kind of figures I am talking about. This leads me to believe that those students must have turned their thoughts to the two year FÁS scheme where they are getting much more money. I have nothing against the FÁS scheme. It is a good scheme except that they are drawing from the same market as the post-primary schools. I do not think we should get into a position where next September, FÁS and the post-primary schools will be in competition for the students who have done their group certificate.

I would ask the Minister to draw this to the Government's attention, because it involves many Ministers — the Ministers for Labour and Education and others — and that they should act immediately to ensure that FÁS and the post-primary schools will not be competing next September when they will be starting their full year.

Unfortunately, we are educating our children for emigration. Before I deal with that topic I want to mention one other item, which has come to my attention where the cutbacks have adversely affected the school going population and that is school transport. In the first year of this Government we had the announcement that £6.5 million was being taken from the school transport budget. It appeared as if all hell was let loose and there was an avalanche of protests. Probably much to the embarrassment of the Minister for Education, the Minister for Finance restored the cash to the previous position by restoring almost all the £6.5 million and that took the heat out of the situation. Last year £5.7 million was taken from the school transport budget, and some cutbacks were gradually introduced. It is unfortunate that many of the cutbacks came into effect in mid-winter. I wonder how many such cutbacks were there during the Christmas period? In my area nine children availing of the school transport have been denied it. They have been given a voucher for the regular bus service, but only an irregular bus service is available and some of these children are six years of age. The result of that cutback — I am speaking about Rathcoole to Clondalkin where nine Church of Ireland children who had school transport up to 17 or 18 December last, and were given vouchers for the regular CIE service — is that not one of those children is now going to school. I have been in touch with the Department on a number of occasions over the Christmas and in the past few days and it would appear there is no joy for those children. They must either take the voucher for the regular service or continue to remain in their own homes. I wonder how many such schemes have been cutback over the Christmas period — in the dead of winter. What parents would allow their six year old child to wait 40 minutes for a regular bus service, having been used to being driven home in the bus when the school closed? I cannot blame these parents for not sending their children to school. I hope this has not been repeated across the country. If there is to be this kind of cutback, could it not be be implemented when the weather would not be too bad, in that way, at least they would have got used to it before the real hardship would be felt?

My concern today is for all those who suffer because of Government cutbacks, but particularly for the young because we are disillusioning them as to what it means to live and be reared in Ireland. Unfortunately, we are preparing most of them for living abroad. I want to mention one item which I have discussed with the banks. Some of them are anxious to do something about this problem, and one bank introduced a scheme recently but, it does not really resolve the problem. Many young boys and girls leave this country with whatever savings their parents can give them to help them in their new life abroad. I do not believe this Government are doing enough for those people who are going to the cities and towns in Great Britain.

One particular problem when they land on the other side of the Irish Sea is that, though they have with them whatever cash they can take, the Irish banks there refuse to take it. A number of such cases were brought to my attention. Last year people who left this country brought with them whatever savings they had. I am not talking about thousands of pounds, in one instance it was £350. In that case an Irish bank refused to open an account for the person concerned in the absence of identification or some verification as to who he was and whether he had an account in Ireland. In fact he did have a bank account in Ireland but left the account number behind him as he thought it would be no use to him on the other side of the Irish Sea. He had £350 that he could not lodge with an Irish bank in London because both of the two major banks here with branches in London refused to open an account for him. He went down the street to an English financial institution who opened an account for him with absolutely no trouble. That man is still with that English financial institution. So also is his pal. I hope the Government will look into this serious matter. My advice to any young person going abroad is that if you are bringing money with you put it into an account or into some safe keeping as quickly as you can. What young person wants to ramble the streets of London looking for a job with £200, £300 or £700 in their back pocket?

One bank informed me today that they have launched a "mover pack" but when I discussed it further with them, I discovered that one has to go into the bank here and get the "mover pack" before he can be facilitated. Any of the people I have referred to can be facilitated in that way by going into any bank and notifying them of their pending departure. I am speaking about the person who leaves with his savings in his pocket and is anxious to get rid of them before he starts looking for a job the following day. I know this matter is not altogether relevant to the debate a Leas-Chathaoirligh, but you have allowed me make the point, and I hope that somebody will take good notice of it and will have discussions with the banks because it is a serious problem for the very many people who have little money, but whatever little they have, they bring with them and we do not want them to lose it on the streets of London. The person I have referred to went into one particular Irish bank and even asked them to keep his money for 24 hours, to open a deposit account, and he would be back the following day when he would have his affairs straightened out. He was refused that.

I am going to finish on that note and I want again to compliment the Minister for his patience during this debate and to wish him well for the coming year.

A Chathaoirligh agus a Sheanadóirí, is cúis áthais dom bheith ar ais arís i Seanad Éireann i dtosach na bliana nua seo. Guím rath Dé ar gach ball den Seanad agus ar gach aon duine a bhfuil baint acu le hobair na bliana atá os ár gcomhair amach.

At the outset I would like to wish the Cathaoirleach and all the Senators as well as the Clerk of the Seanad, the assistant, the other staff of the House and the Members of the Press Gallery a very happy and fulfilling new year. I would also like on my own behalf and on behalf of the Government to be associated with the very special welcome to our most recently elected Member, Senator Tony Bromell. I am confident that he will do both himself and the Treaty city proud in the years ahead.

I want to thank all those Senators who spoke during the pre-Christmas discussion and over the last two days for their thought provoking and constructive contributions. The debate has proved to be a stimulating and wide-ranging one. Many points were raised both specific and general. It would not be possible for me to reply in detail to all them but I do propose to respond today to some of what I consider to be the most important ones.

Before dealing with these points, however, I would like to outline for the House developments which have occurred since I spoke to you before Christmas.

Chief among these developments has, of course, been the publication of the end-year Exchequer returns. The end-year results for 1988 clearly show, if there was ever any doubt, just how successful the Government have been in correcting the imbalance in the public finances.

The Exchequer returns show that borrowing last year was at an exceptionally low level. The overall level of Exchequer borrowing was £619 million or just 3.4 per cent of gross national product, the lowest for 30 years. The outturn compares with a 1988 budget estimate for the Exchequer borrowing requirement of £1,457 million or 8.2 per cent of GNP. This improved performance is a direct consequence of the economic and fiscal policies being pursued by the Government. While the outstanding success of the tax amnesty resulted in a large once-off gain for the Exchequer during 1988, the underlying Exchequer borrowing requirement for the year works out at 6.1 per cent of GNP — a full 2.1 percentage points lower than the budget target. Put simply, within two years of assuming office in March 1987, the Government have succeeded in halving the Exchequer borrowing requirement. When we came into office it stood at about 13 per cent of GNP; it is now just above 6 per cent of GNP. We are determined to continue with the decisive action to bring down the EBR to even lower levels.

The success of the tax amnesty was only one, albeit the most significant, of a number of favourable developments which occurred last year.

On the current expenditure side of the budget, significant savings emerged in 1988. On central fund services there was a saving of £69 million. About £37 million of this arose from a reduction in our contribution to the EC budget. That was a result of changes in the method of financing that budget. The remainder arose from savings on debt servicing costs.

Non-capital supply services issues were some £84 million below the budget target. The principal savings in this regard arose on Social Welfare, £90 million, Agriculture and Food, £8 million, Tourism and Transport, £7 million, Superannuation, £6 million and Third Level Education, £6 million. These savings were partly offset by excesses on other Votes, the main ones being Public Service Retirement payments, £18 million, Environment, £8 million, Industry and Commerce, £5 million, Justice, £4 million and Second Level Education, £4 million.

The most significant saving, of course, was that achieved on Social Welfare and resulted from a lower live register, an annual average of 241,500 compared with the 253,000 which had been assumed at this time last year, higher receipts on the social insurance fund and the imposition of tighter control measures generally.

This saving on non-capital supply services expenditure is all the more remarkable when one considers that the Government ensured that an allocation of £21 million was made for a Christmas bonus payment to certain welfare beneficiaries.

Capital expenditure also came in under target. Exchequer spending on the public capital programme was some £9 million below budget. The most significant of the savings achieved occurred on the finance group of services where £12.5 million was saved on national lottery projects which did not proceed as rapidly as had been expected and where Fóir Teoranta was in a position to generate funds from non-Exchequer rather than Exchequer sources, thereby saving £6 million for the Exchequer. These savings were largely offset by an excess of over £12 million on the Environment group which resulted mainly from additional payments on house improvement grants and new house grants. There were also savings on industrial grants, commercial harbours and BIM but these were more than offset by increased investment by Údarás na Gaeltachta and in the farm improvement programme.

Exchequer-funded non-programme outlays outturned at almost £15 million less than the £40 million provided in the 1988 budget reflecting a dramatic reduction in the dependence of the State-sponsored body sector on the Exchequer for reconstruction finance.

The overall Exchequer savings on the expenditure side of the capital budget were enhanced to some degree by a small increase in Exchequer capital resources. Overall Exchequer borrowing for capital purposes at £302 million was £30 million below target.

On the revenue side of the budget, a number of factors, other than the amnesty, resulted in tax receipts being much more buoyant than had been anticipated at budget time last year. The move to self-assessment proved very successful and receipts were some £70 million higher than had been expected. The more favourable performance of the economy increased the "take" from indirect taxes. The sharp recovery in car sales boosted revenue from excises by some £33 million while receipts from tobacco sales were over £13 million higher than the budget estimate.

In my speech last month in this House introducing the Appropriation Bill I referred to the success of the 1988 funding programme. This is evidenced by the fact that the Exchequer comes into 1989 with cash balances of £527 million compared with the £343 million available at the start of 1988. This improvement has been secured despite repaying in advance a substantial proportion of the national loans due for redemption in 1989 and repaying £443 million of foreign debt. Investment in Irish pound Government securities by non-residents also reached a record level in 1988 and clearly represents a vote of confidence on the part of foreign investors in the policies the Government have been pursuing.

When I spoke here in the House before Christmas, I dealt in some detail with the improving economic situation. While I do not intend to cover the same ground again to-day, I believe we are entitled to take justifiable pride in the following achievements. Last year we saw a continuation of the strong recovery in the economy which started back in 1987. Improvements have been recorded in the budgetary situation, in growth, in output, in the trade and balance of payments position and in inflation. Above all, we witnessed the turnaround which has begun in employment and the downward trend in unemployment. It is encouraging to note that the live register for end December 1988 showed a drop of 1,200 in the seasonally adjusted total. This was the fifth successive month in which there was a fall in the seasonally adjusted live register. A further welcome development was the news that the target for the creation of 20,000 new jobs in 1988 under the Programme for National Recovery was fully met and achieved.

We can take one major lesson from recent developments for the future. The Government's action in controlling public expenditure need not lead to lower growth. In fact, the reverse is true. For a long time, a "conventional wisdom" in Ireland, even among some economic commentators, had been that correcting the public finances could only be accompanied by low or falling growth for some time. This has not happened. Over 1987 and 1988, the Government, as I have already mentioned, more than halved the underlying Exchequer borrowing requirement while at the same time GNP growth averaged about 3 per cent. Export growth certainly made a major contribution to this growth but it is worth noting that real personal consumption rose last year, investment in plant and machinery was buoyant and, of course, employment started to rise again after three years when there was no change. These are signs of a real change of direction in the economy.

By taking decisive action, the Government have unleashed a dynamism which has offset the impact of lower Government spending. As Senator Fallon stated before Christmas, the nation is recovering its confidence both in its future and in itself. The radical change the Government have brought about has shown itself in a number of ways. First, there was the substantial drop in interest rates following the 1987 budget. Interest rates have fallen by 6 percentage points since then and have stayed down despite the international trend towards higher interest rates especially in the UK. This decline in interest rates has had a downstream impact on personal consumption and investment, both of which strengthened last year. I am sure we will see further positive developments in these areas in the future. Business confidence has picked up in recent years because of the Government's firm and decisive handling of the economy. This, in turn, must help future investment. The reality is that over the past two years the Government have created a new economic climate and we are already beginning to reap the benefits of this.

Senators are aware that this year's budget will be introduced on Wednesday next, 25 January. I am not, of course, privy to the details of the budget but there is nothing surer but that the measures to be announced by the Minister for Finance will ensure continuation of the major economic and social progress which has been achieved by this Government since we came into office. Before Christmas, I struck a note of caution in relation to the budget on behalf of the Minister for Finance and I want to repeat it here today — in settling the budget the room for manoeuvre is not as wide as some commentators have suggested. There are a number of reasons for this.

First, our national debt at the end of 1988 stood at about £24.5 billion. The service of this debt will absorb a substantial amount of scarce resources in 1989; upwards of £2 billion in fact. This is the equivalent of £2,500 per taxpayer. Thus, debt servicing is still imposing a severe burden on the budget and on individual taxpayers. If this situation is to be eased, further progress will have to be made in 1989 in controlling borrowing. This is the first priority.

Secondly, the tax amnesty, while it proved to be a major success in 1988, will result in a sizeable reduction in the tax base this year. This is due to the fact that arrears which would have been collected in 1989 in the normal course already have been collected under the amnesty in 1988. This is a very important factor which is frequently overlooked. The loss in 1989 could be upwards of £150 million on this score.

Finally, the carryover costs of the tax and expenditure measures adopted in last year's budget will be quite heavy in 1989. Last year's income tax concessions alone will cost the Exchequer £150 million in 1989. This will be an ongoing cost.

The combination of these factors means that the Government will be faced on budget day with a less favourable opening borrowing position than that predicted by a number of sources in the financial sector. Given the need to reduce further the level of borrowing, the scope for budget day concessions will, therefore, be limited. The task of framing the 1989 budget is therefore a difficult one. What I can assure the House is that responsible management of the public finances will continue under this Government.

As regards the economy in 1989, the international context — which is of prime importance to us — is likely to continue to be favourable for Irish exports. Furthermore, the pay agreements under the Programme for National Recovery will further improve Ireland's international competitive position during 1989. On the domestic front there is likely to be a further strengthening of the basis for long run growth. Moderate inflation and the lower cost of borrowing should provide an impetus to consumer and investment demand. I am confident that we will see stronger growth this year going hand in hand with continued progress in correcting our budgetary problems and that the recovery in employment, which began last year, will continue in 1989 and the years immediately ahead.

I now want to respond to some of the many points raised during both the pre-Christmas and the present debates. Senator Bulbulia's speech before Christmas touched on many areas of Government expenditure policy. She was particularly concerned with the health sector, the less well off in society, local authority housing and overseas development assistance. She expressed views that were echoed in many later contributions. Senator Bulbulia suggested that institutions dealing with the mentally handicapped were due to hear of reductions in their allocations for 1989. Senator Bulbulia will be pleased to learn that the 1989 allocations to the homes for the mentally handicapped were in fact increased from £65.7 million in 1988 to £67.9 million in 1989. This represents an increase of £2.2 million or 3.3 per cent on the 1988 provision and is evidence of the Government's continuing policy of ensuring that key community services in the health sector are protected.

Senator Bulbulia also expressed concern about those people who are waiting for elective medical or surgical procedures and who were stuck on waiting lists of 50,000 with their conditions deteriorating. Information available to me from the Department of Health does not indicate any significant increase in the number on waiting lists. Those who are on waiting lists are regularly assessed by the consultant involved. Should the consultant be of the opinion that a person's condition has deteriorated, while on the waiting list and requires immediate medical attention, he or she will receive the appropriate treatment as a matter of urgency.

I can assure Senator Bulbulia that health boards and hospital managements are being asked, in determining their budgetary strategy for 1989, to make every effort to ensure that unnecessary delays in treating patients do not occur. Management and staff have been encouraged to be innovative in their approach to health care delivery. Indeed, increased emphasis on the use of day medical and surgical techniques in hospitals has resulted in increased patient throughput leaving an increased number of beds available for patients requiring in-patient treatment.

Senator Bulbulia suggested that health board allocations for 1989 had been frozen at the 1988 figure of £640 million, that they are in the main already operating on overdrafts and that they have carried over deficits into 1989. The Senator should note that the total 1989 allocation to health boards is £778.2 million and not £640 million as she has stated. The 1989 provision represents an increase of £4.64 million of 0.6 per cent on the health board's 1988 allocations. Although the Government accept that the health boards are not going to have an easy year in 1989, it should be possible, given the measures taken over the last two years, and the increasing efficiency in health care delivery, to maintain services at 1988 levels broadly. It is encouraging to learn, for example, that already the North Western Health Board have adopted a budget within allocation for 1989 and with no major service reductions envisaged.

In common with many people who purport to be knowledgable in the area of health service finance, Senator Bulbulia does not seem to realise that the use of reasonable levels of overdraft is standard practice in most spheres of economic activity. It is not in itself an indication of the budgetary position. Health Board overdrafts represent only about 2.5 per cent of the net allocation which is a very modest figure. I am pleased to report that health board deficits were virtually nil in 1988, and indeed I would take this opportunity to compliment the boards on their financial management performance over this period. The virtual elimination of health board overruns in 1988 is to be particularly welcomed, bearing in mind that this Government on taking office inherited record over-expenditure of £35 million by health agencies arising out of Coalition mismanagement of our public finances.

And Fianna Fáil members of the boards.

Senator Bulbulia went on to suggest that there was no thought or no idea of restructuring the number of health boards. Let me say that the reorganisation of health board structures is one of the priorities of the Minister for Health in improving and developing our health delivery system. It is accepted that changes need to be made in relation to the framework of health boards. The relationship between boards and management, the role of boards and improvements in the management of our delivery system, all need to be addressed. The abolition of the health boards is not, however, on the agenda at this time.

The most effective approach to health board reorganisation is to identify the failings and shortfalls in the existing structure, to test different delivery systems, to establish their value and general application and then to make the necessary adjustments in structures, management and responsibility. It is in all our interests to ensure that the delivery system is properly structured, responsive to change both now and in the future and can deliver a quality service. The Minister's approach is the correct course of action needed to achieve the improvements necessary.

Many Senators, whose contributions focused on the welfare area and the plight of those in poverty in Ireland today, were anxious to know what the Government intended to do in the forthcoming budget about these issues. I want to say that I, and the Government, fully share their concern and interest. It is not custom, of course, to reveal in advance what the Minister for Finance may have in his budget package. A quick look at the Government's record, however, shows that they have consistently translated words into deeds in so far as helping the deprived is concerned.

On coming to office in 1987 we brought forward the budget increases in welfare payments to July 1987, four months earlier than the previous Government had proposed. We also decided against implementation of certain proposals contained in the previous administration's draft budget which would have impacted harshly on welfare recipients — such as the proposed extension of the number of waiting days before receipt of disability benefit from three days to six days. Later that year, we extended the free fuel allowance to the long term unemployed.

In the 1988 budget, the Government not only fully protected the real value of all welfare benefits, but also gave significant increases to those on the lowest weekly payments. For example, persons dependent on unemployment assistance received an increase of some 11 per cent in their personal rate. We also made significant inroads into the long standing problems of the plethora of different rates of weekly child dependant allowances and our rationalisation measures reduced the number of different rates by half.

I can assure this House that the plight of the less well off in our society is high on the Government's agenda in the forthcoming budget. I am confident that the Government's commitment in the Programme for National Recovery to maintain the overall value of social welfare benefits and, within the resources available, to consider special provision for greater increases, to those dependent on the lowest levels of welfare payments will be honoured.

Senator Bulbulia criticised the reduction in our spending on official development assistance in 1988. The economic difficulties facing the country made it necessary for us to reduce expenditure on many programmes at home and abroad, even though those programmes were highly desirable in themselves. Overseas development assistance was among them. However, I would like to point out that the provision for ODA in 1989 is £33.7 million, an increase of £1 million on the 1988 provision. This will represent the same proportion of our GNP as in 1988.

Senator Bulbulia made some sweeping statements about Government policy in relation to housing and suggested that there had been no house building in 1988 and that there would be none in 1989. Those statements, of course, are totally without foundation. While precise final figures are not yet available for 1988, local authorities are expected to have completed about 1,500 new local authority dwellings last year and a further 1,000 approximately will be completed in 1989.

Not in Dublin.

There is a surplus of housing in Dublin. We cannot get people into the areas of Dublin where the vacant houses are. It is a matter for the corporation to deal with that.

This is as a result of emigration.

This level of completions, together with dwellings becoming available from the existing stock for reletting, should provide a reasonably adequate level of housing provision, given the present reduced level of needs. At 31 December 1987, the latest date for which details are available, the number of approved applicants for local authority housing, at 18,561, was over 11,000, or almost 40 per cent down, on the level of needs at 31 December 1982. This fall does not fully reflect the reduction in real housing needs with any applicants choosing to decline reasonable offers of accommodation and await accommodation that is becoming available in an area of their choice something that is very prevalent in the Dublin area. Against this background of reducing real housing needs, the levels of capital allocated to the programme in previous years cannot be justified.

While discussing housing, Senator O'Callaghan correctly pointed out that the previous house improvement grants scheme was abolished in the 1987 budget because of the massive commitments it had brought. This scheme was introduced by the previous Government and incurred commitments of £260 million from 126,000 approved applications. Despite the fact that it was abolished nearly two years ago this scheme is expected to cost about £20 million this year.

Lower interest rates are of far more benefit to most people than an inefficient Government grant, and if interest rates are to be kept at their present level, then borrowing must be kept under control. There is therefore, no plan to introduce another house improvement grant scheme even a less grandiose one such as suggested by the Senator at this time.

Senator O'Callaghan referred to the desirability of putting the Whiddy oil terminal back into action. I can assure the Senator that the Government share his view on this point. The INPC is busily seeking, with the strong support of the Government, a partner who will be prepared to invest in the re-activation of the facility, and also indeed in the upgrading of the Whitegate refinery.

Senator O'Callaghan also recommended that we develop a coherent energy policy. It would not be accurate to suggest that we do not have a coherent policy, as things stand. Certain overriding principles guide the Government's approach in this sector. These include maximum use of indigenous energy sources, pricing by reference to market clearing price, the need for the State bodies in the energy sector to be efficient and profitable where mandated to be so: the ESB and the INPC are expected to break even, encouragement of exploration for oil and gas in Irish waters and the promotion of measures to improve energy efficiency and conservation.

Not all of the points raised during the debate were critical of Government policy or dismissive of the impact which those policies are having on the economy. In this context I am glad of the opportunity to add to the comments made by Senator Fallon about the successful year enjoyed by farmers in 1988. The combination of reduced interest rates, low inflation and substantial price increases meant that farm incomes increased by 17 per cent in 1988. This followed on a 20 per cent increase in 1987. There is little doubt that policies that get the economic fundamentals right are the correct policies for farming and the agri-business. The buoyancy of the agriculture sector is a visible indicator of the positive impact of the Government's economic policies.

Senator O'Connor referred to the fact that agricultural incomes were unusually low in 1985 and 1986. While this is true, some of the factors, such as the super levy, which contributed to the low income levels, were still present in the following years. Accordingly, the 20 per cent increase in farmers' incomes in 1987 followed by a 17.1 per cent increase in 1988 represents real progress in agriculture under this Government.

Senator Fallon also pointed out that the construction industry is showing the first signs of improvement since 1981. The Department of the Environment in their "Construction Industry Review of 1987 and Outlook for 1988" forecast an increase in output in 1989 and 1988. This will be the first real improvement for a number of years, and is a direct result of the improved economic climate and lower interest rates brought about by this Government's economic policies.

Senator Fallon rightly called attention to the upward trend in the performance of the commercial State bodies over the past year. Clearly, some have performed better than others, but the overall trend is decidedly favourable. The Senator mentioned certain specific success stories, both in terms of profitable results and of reductions in prices.

The Government are encouraged by this positive response to their insistence that State bodies should improve their efficiency and increase their viability. We are committed to the maintenance of a dynamic State sector which makes a vigorous commitment to viable employment and to national development. We will not be prepared to shore up indefinitely bodies that are not moving towards the achievement of that goal. We are encouraged, therefore, by the momentum and the positive results that many State bodies have been generating in the past year.

Senators Fallon, O'Callaghan, Loughrey, O'Shea, Cullimore, Mooney, Mulroy, Hogan and others referred to the importance of tourism. Developments in this area have been very positive in the past two years, with rapid growth of both tourist numbers and revenue in 1987 and indications of good results for 1988.

Senator Fallon remarked that we must continue with the new attitude to tourism and we must explore every avenue. As Senator O'Callaghan pointed out, a major problem has been overcome with the reduction in access costs. I am sure that all Senators have been aware of a definite "buzz" of interest and of new ideas in tourism in recent times. This is associated not only with the good results, but with the flow of the new ideas, like the American football game mentioned by Senator Fallon and new investment proposals.

Although our policies have begun to bear fruit, it is true as Senator Loughrey said, that some parts of the country have benefited more than others, but we recognise that there is much more to be done and we envisage that over the next few years emphasis will shift to upgrading our tourism "product" and improving facilities.

The extension of the business expansion scheme to tourism has met with a good response. The number of projects coming through or in the pipeline is high and substantial new investment is in prospect. The scheme is carefully designed to maximise growth in tourism revenue and thus to benefit the whole economy. Senator Cullimore suggested further extensions of the scheme. Such extensions are often proposed but this scheme is already very costly in terms of tax foregone, and further extensions would naturally give rise to further costs.

Interest in tourism is at a high level and a great many new ideas for development are being brought forward by the tourism industry. The Government, for their part, will not be found wanting in following up opportunities for development in tourism.

I would like now to deal with the points made by Senator Joe O'Toole about the Central Bank's contribution towards financing the redundancy payments scheme.

At the outset I would like to make it clear that the Government did not purloin any money from the Central Bank. The bank agreed to make a contribution towards financing the redundancy payments scheme and this decision was fully within the competence of the board of the bank. There is nothing unusual about boards entering agreements which extend over a number of years.

Section 63 (7) of the Currency Act 1927 as amended, provides that:

The Central Bank shall pay its surplus income as and when determined under this section into the Exchequer in such manner as the Minister shall direct, and may at anytime, pending such determination pay into the Exchequer such sums on account of surplus income, as may be agreed upon by the Minister and the Central Bank.

The contribution made by the Central Bank towards financing the redundancy payments scheme is fully in line with the provisions of this section.

The Government and the Central Bank have agreed repayment arrangements for the advances, which indicate in the clearest possible manner the responsible approach of the Government on the matter. The repayments will commence after a one year moratorium, in each case, and will take the form of four annual deductions from the normal surplus income, which would be due to the Exchequer each year. This repayment period was agreed, so as to allow the full impact of the savings to come through to the Exchequer, in time to meet the repayments to the bank. Senator O'Toole talked about advances being made over a five year period, but in reality it is the repayments that are being made over five years. When the process of repayments has been completed, the Central Bank will be back to paying over its surplus income one year in arrears, as it would be, had it never financed redundancy costs and the Exchequer will be making significant savings each year, as a result of the success of the redundancy programme.

The scheme of voluntary redundancy and early retirement in the public service has been very successful in reducing public service numbers. The early retirement terms which were generally available to staff over the age of 50 in certain areas of the public service, are no longer on offer. I would tell Senator Harte that the voluntary redundancy scheme will continue to operate, on a restricted basis, in 1989, only in areas where a surplus of staff has been identified; or where further staff savings are necessary to achieve expenditure cuts decided on in the Estimates.

It is essential that public service numbers should continue to be restricted, since the public service pay bill accounts for such a large share of public expenditure: to keep down expenditure, it is necessary to keep down the number of public servants.

Senator O'Toole referred to the provision for primary education. I would point out to him that the net provision for the four Education Votes in the Abridged Estimates Volume for Public Services for 1989 is approximately £1,169 million, the gross provision being in excess of £1,256 million. The allocation for pay and pensions in the gross provision is £1,026 million approximately, corresponding to 82 per cent of gross expenditure. It includes the cost of the second phase of the 1987 Public Service Pay Agreement, the payment of special increases due in 1989, and the remaining phase of the ex gratia award to teachers. I can assure Senator Murphy and O'Shea that, despite this high pay and pension bill, this Government have continued to protect the disadvantaged groups.

The Minister for Education will continue to do so in 1989, including the continuation of the scheme of providing additional teaching assistance to primary schools in areas of disadvantage costing over £1 million. The programme of special assistance for schools in disadvantaged areas will continue in 1989 at a cost of £500,000 and will provide books, materials and go towards the relief of school debt in disadvantaged areas. The massive sum of over £500 million will be spent in 1989 on various schemes of assistance to around 20,000 students attending third level institutions.

These measures and the overall allocation of £1,256 million in 1989, constitutes a clear indication of Government commitment to maintaining and developing the quality of our education system. It means that £18.8 out of every £100 Exchequer expenditure in 1989 will be spent on education. Moreover, expenditure on education amounts to almost 6.2 per cent of gross national product which is much higher than for virtually all other member states in the European Community.

I should like to inform Senator McKenna, who asked that the file on the Thurles regional technical college be reopened, that the need for additional accommodation for third level students is being kept under close review by Government and a high level interdepartmental group are currently examining the future provision of all third level places.

The Leas-Chathaoirleach, Senator McDonald, inquired about repairs to the National Gallery. The position is as follows. My Department, the Office of Public Works, are carrying out work which is presently in progress on the repair of the roof of the 1864 wing of the National Gallery beside Leinster Lawn. This work has been funded by the national lottery. It is due for completion in April next at a cost of £150,000. The Government have approved the provision of £5 million over the next three and a half years for work in the National Gallery. This will be funded from the Vote for the Office of Public Works in my Department. This will allow work to commence later this year on what is intended to be the first phase of the overall refurbishment of the gallery. Consultations are in progress at present with the National Gallery authorities to agree on the precise works to be undertaken in phase I. In general, I can say that these works will make major improvements to gallery security, will deal with problems of public safety and will correct the most serious of the environmental problems in the building. The first phase of the work will be completed in the second half of 1991. I am not in a position at this stage to say when the remaining phases of the work will be undertaken. This will depend on the availability of funds after 1991.

Several speakers have referred to the Government's efforts pertaining to securing the maximum amount of EC Structural Funds for this country between now and 1992. As the House will know, we have set up a very clear structure, a very definite system, to ensure that the maximum number of projects are accepted both at national level, after thorough examination, and by the European Community and the Commission for funding between now and 1992. A very high level delegation representing the Government, consisting of no fewer than five Ministers and the Minister of State for European Affairs, Mrs. Máire Geoghegan-Quinn, went to Europe earlier this week to pursue our case. After that meeting the Commission issued a detailed statement. I am now going to quote part of that statement:

The Commission welcome the thorough and comprehensive work presented by the Irish Government. This will prepare the ground well for the Commission to process the forthcoming plans and programmes for Ireland and thus ensure that the execution of the Structural Funds for 1989 and the years ahead will be done efficiently and in coherence with medium term planning.

This was discussed against the background of the reform of the Structural Funds, the increase in the volume of resources and the consequences of the transition to the new system. Against this background agreement was reached on the objectives and programme headings to be covered by the plan submitted by the Irish Government. Progress for the Plan was reviewed and it was clear that the progress being made would enable the Plan to be submitted by 31 March 1989. The arrangements for sub-regional programmes to supplement the National Plan were welcomed by the Commission as giving the opportunity to spread the projects within the Programmes throughout the country.

I hope that that quote from the Com-mission's publication this week clearly puts the matter in context and shows the commitment of this Government to securing the maximum funds from the European Community for infrastructural development and other projects here between now and 1992.

Fianna Fáil have been castigated during this debate by various Opposition speakers for their performance and attitude when in Opposition. It has been easily forgotten by these same speakers that we gave many ideas to the last Coalition Government as to how they could stimulate economic activity. Above all, it must be remembered that we were a clear minority Opposition playing our rightful political role in the last Dáil. The Coalition Government had a clear majority in the House for over four years. They could have implemented several financial remedial policies if they so wished. They chose soft options for short-term political expediency because the two parties making up the Coalition Government, namely Fine Gael and Labour, could not agree or would not acknowledge the necessity to implement, radical fiscal policy. The end result was the doubling of our national debt during the four years of Coalition Government leading ultimately to the disintegration of that Coalition Government. Thereafter, a minority Fianna Fáil Administration, under our outstanding Taoiseach, Deputy Charles J. Haughey and his excellent Government, have come to the rescue of the financial crisis imposed on our people.

What about the about-turn, what about the rule in Opposition?

I have clearly outlined the position, that, as a majority, the Coalition Government had every option and no minority Opposition could have had the slightest impact on the performance of a majority Government.

I want to assure Senator Hogan that An Bord Glas is very active under the Minister for Horticulture, Deputy Séamus Kirk and is making and will make, a major contribution on import substitution in the years ahead. I was pleased that the former Minister for Industry and Commerce, Deputy Reynolds, transferred the Butler complex in Kilkenny to the Kilkenny Civic Trust. My Department played a very positive role in that decision, as did the Minister for Forestry, Deputy Liam Aylward. I wish the Trust every success in the years ahead.

The Government's attitude to air traffic has resulted in greater competition, lower access fares, more tourists, better regional infrastructure and a growing investment in these areas. We intend to continue these policies.

I might reassure Senator Ferris that this is a Government of courage and conviction. There is light in the tunnel. There are massive investments taking place throughout the economy. Confidence in our country is at its highest for over 20 years. There is no such thing as staying as we were under Coalition. The tunnel was dark when Senator Ferris's party was in power, but Fianna Fáil, in Government, have restored hope, confidence, pride and performance to our people. Neither this Government nor the positive-minded people throughout the country will be found wanting in restoring financial viability to this great country and achieving this through our Programme for National Recovery.

Is the motion agreed?

Question put and agreed to.

Could we have an indication from the acting Leader of the House when it is proposed to sit again?

Wednesday, 1 February 1989 at 2.30 p.m.

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